Tax Identity Theft Awareness Week - January 26-30
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:
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.