Tax Help – What is Tax Identity Theft?

Tax Identity Theft continues to become a growing problem in America. This past year, reports of identity theft increased 2,300 percent and the IRS recently announced that more than 100,000 people had their identity stolen in a hack . Community Tax has always been aware of the problems that Tax Identity Theft can cause you, and we offer a Monitoring Program to make sure you never have another tax problem again.

What is Tax Identity Theft?

The IRS defines Tax Identity Theft as someone using “your stolen Social Security number to file a tax return claiming a fraudulent refund.”

How do I know when Tax Identity Theft is happening to me?

There are several warning signs.

1) If you find out more than one tax return has been filed with your Social Security number, you may have fallen victim to Tax Identity Theft.

2) The IRS indicates that you received wages from an employer you don’t work for.

3) You happen to owe additional taxes, refund offset, or had collections taken against you for a year(s) that you did not file a tax return.

Is there a way to avoid Tax Identity Theft?

DO NOT give away your Social Security number to any untrusted source. Some people will try to take your personal information by impersonating the IRS over the phone and sending emails posing as the IRS to phish for information. These thieves will try to intimidate taxpayers by threatening arrest or deportation or will sometimes even offer to “give you a tax refund.” Be sure to also protect your personal information through simple, everyday changes. Don’t carry your Social Security card in your wallet, protect your home computers by setting up firewalls and other anti-spam software.

Luckily, if you sign up with CTax Monitoring, you will receive Tax Identity Theft Resolution at no extra cost. We will make sure that you never have another tax problem again.

About the Author: Nick Charveron is a licensed tax practitioner, Co-Founder & Partner of Community Tax, LLC. His Enrolled Agent designation is the highest tax credential offer by the U.S Department of Treasury, providing unrestricted practice rights before the IRS. Follow him on Twitter @VelocityTax