Tax Identity Theft Awareness Week - January 26-30

Pewaukee, Wisconsin – With January 26-30 recently being named Tax Identity Theft Awareness Week by the Federal Trade Commission (FTC), Jannsen + Company, a business advisory and accounting firm in Pewaukee, is urging businesses and individuals to pay close attention to their documents and paperwork.
 
Tax identity theft can happen when someone uses your Social Security number to file a fraudulent tax return in order to get a tax refund or claim your child as a dependent. Tax identity theft has been the most common form of identity theft reported to the FTC for the past five years, and results in more than $2 billion in losses to the U.S. Treasury each year.
 
According to the IRS, scammers are using stolen Social Security numbers to file forged tax returns and try to get refunds early in the filing season. If you are a victim, after filing your returns, you will receive a notice from the IRS that a tax return has already been filed.
 
“We have seen this kind of theft becoming much more common over the last few years,” said Thomas Hicken, CPA, shareholder at Jannsen + Company. “Clients typically don’t discover it until they go to file their own tax return and then are notified by the IRS that a return has already been filed in their name.”
 
To lessen the chance of being a victim, Jannsen + Company has several recommendations:

• File your tax return early in the tax season

• If filing electronically, use a secure internet connection
• Mail your tax return directly from the post office using certified mail
• Shred copies of your tax return, drafts, or calculation sheets you no longer need
• Respond to all mail from the IRS as soon as possible
• Know the IRS won’t contact you by phone, email, text, or social media. If the IRS needs information, it will first contact you by mail.
• Don’t give out your Social Security number or Medicare number unless necessary. Ask why it’s needed, how it’s going to be used, and how it will be stored.
• Get recommendations and research a tax preparer thoroughly
• Check your credit report at least once a year to make sure no other accounts have been opened in your name
• If your information has been compromised, contact the IRS Identity Theft Protection Specialized Unit at 800-908-4490

 
Tax identity theft victims typically find out about the crime when they receive a letter from the IRS saying that more than one tax return was filed in their name, or IRS records show they received wages from an employer they don’t know.
 
“If you get a letter like this, don’t panic,” said Hicken. “Contact the IRS Identity Theft Protection Specialized Unit and they can help you sort through it.”
 
More information about tax identity theft is available from the FTC at ftc.gov/taxidtheft and the IRS at irs.gov/identitytheft.
 
 
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About Jannsen + Company, S.C.
Founded in 1975, Jannsen & Company is a full-service certified public accounting and business resources firm with more than 30 professionals and employees. Besides a full range of CPA and payroll processing services, Jannsen & Company advises businesses on information technology and human resources.