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Tax-related identity theft is a growing problem in the United States, so much so that the Internal Revenue Service (IRS) has taken specific steps in the last three years to combat it. This kind of identity theft occurs when somebody steals your Social Security number and uses it to file a tax return claiming a fraudulent refund. Victims of tax-related identity theft suffer delayed refunds as the IRS must sort out fraudulent documents, creating headaches and frustration for both taxpayers and the government.
Typically, many victims don’t realize their identities have been stolen until they try to e-file their returns and discover that a return has already been filed using their Social Security number. In other cases, the IRS will send a letter informing the victim that they have identified a suspicious tax return using the victim’s social security number. In order to avoid having your identity stolen this upcoming tax season, it’s important to know the warning signs.
For instance, the IRS never starts contact with a taxpayer by sending an email, text or social media message requesting personal information. If you receive such a phishing email or encounter suspicious online activity, do not reply or click on any of the links. Instead, report it to the IRS immediately by emailing phishing@irs.gov. For phishing scams by phone, fax or mail, call 1-800-366-4484.
Other red flags include owing additional taxes, refund offsets or collection actions taken against you for a year you did not file a tax return, or if IRS records show that you received wages from an employer for whom you never worked.
Here are some other tips for avoiding tax-related identity theft:
Steps for victims