When it comes to tax-related identity theft, there are two victims — the taxpayer, who may not receive the refund he or she earned, and the IRS, which may be the first to detect the fraud.
Tax-related identity theft happens when someone steals your Social Security number to file a tax return that claims a bogus refund. Over the past few years, almost 2,000 people have been convicted of refund-related fraud connected to identity theft.
- Guard the card. Don’t carry your Social Security card with you, and provide the number only when you know who’s asking and it’s absolutely necessary to reveal it.
- Avoid scams. If someone calls out of nowhere and demands an IRS payment, it’s probably a scam. The IRS will never call and demand immediate payment unless it has already mailed you a bill.
- Report identity thefts. If you think your Social Security number has been stolen, report it to police and contact credit bureaus so they can freeze your accounts.
- File an affidavit. File IRS Form 14039 Identity Theft Affidavit after you’ve filed a police report.
- Get an IP PIN. If you or the IRS believe you’re the victim of identity theft, the agency will issue you an Identity Protection Personal Identification Number, a unique, six-digit number you’ll use to file your tax return.
- Help an agency out. If you know or suspect someone is committing tax fraud, report it to the IRS by visiting IRS.gov