Identity Theft Leads to a Rise in Tax Fraud

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Irene Torres has 1 Published Articles

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Identity Theft Leads to a Rise in Tax Fraud

Posted On : Jun-19-2011 | seen (357) times | Article Word Count : 557 |

RocketRelief is the best way to work with tax professionals to solve common tax problems. We recruit and contract independent tax professionals for on-demand tax relief, consultations, and solutions.

Last week we talked about how to securely send your information to the IRS. At the end, we noted how “the private and sensitive information contained in your tax documents are the stuff of an identity thief’s dreams: Names, addresses, Social Security numbers, banking information, and so on. It’s the most sensitive packet of information most of us send out all year.” While taking that much precaution may appear overly cautious, new information from the IRS begins to puts this issue into perspective.

Recently, the Government Accountability Office issued a report on Taxes and Identity Theft. It issues the report because “[i]dentity theft is a serious and growing problem in the United States. Taxpayers are harmed when identity thieves file fraudulent tax documents using stolen names and Social Security numbers.” This report noted that in 2010, the IRS identified over 245,000 identity theft incidents that affected the tax system. What is shocking is that in 2008 and 2009 the number of incidents was only 51,702 and 169,357 respectively.

Identity thieves harm taxpayers through employment and refund fraud. With refund fraud, an identity thief uses a taxpayer’s name and Social Security Number to file for a tax refund. In employment fraud, an identity thief uses a taxpayer’s name and SSN to obtain a job. When the thief’s employer reports income to the IRS, the taxpayer appears to have unreported income on his or her return, leading to enforcement action by the IRS against the unsuspecting taxpayer.

Using the techniques described in last week’s post can save you time and money with the IRS. The report notes that “the name and Social Security Number information used by identity thieves to commit refund or employment fraud are typically stolen from sources beyond the control of the IRS. IRS officials stated that they are unaware of any incidents where information was stolen from IRS and used to commit these types of crimes.

Here are 5 Things the IRS thinks every taxpayer should know about identity theft:

1. IRS does not initiate contact with the taxpayer by e-mail.

2. If you receive a scam e-mail claim to be from the IRS, forward it to the IRS at phishing@irs.gov.

3. Identity thieves get your personal information by many different means, including: stealing your wallet or purse, posing as someone who needs information about you through phone calls or e-mail; looking through your trash for personal information, and accessing information you provided to an unsecured Internet site.

4. If you discover a website that claims to be the IRS but does not begin with ‘irs.gov’, forward that link to the IRS at phishing@irs.gov.

5. If you believe you may be affected by identity theft, you may provide the IRS with proof of your identity: which includes your Social Security card, driver’s license, or passport, along with a copy of a police report and/or a completed Form 14039, Identity Theft Affidavit. Or you can contact the IRS Identity Protection Specialized Unit at 800-908-4490.

We have successfully defended identity theft victims. If you have been a victim of identify theft, contact us if you wish to learn more about how we can help clear your name with the IRS.

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<h1>Identity Theft Leads to a Rise in Tax Fraud</h1> Author: <a href='http://www.articleseen.com/profile_Irene Torres.aspx'>Irene Torres</a> Last week we talked about how to securely send your information to the IRS. At the end, we noted how “the private and sensitive information contained in your tax documents are the stuff of an identity thief’s dreams: Names, addresses, Social Security numbers, banking information, and so on. It’s the most sensitive packet of information most of us send out all year.” While taking that much precaution may appear overly cautious, new information from the IRS begins to puts this issue into perspective.

Recently, the Government Accountability Office issued a report on Taxes and Identity Theft.  It issues the report because “[i]dentity theft is a serious and growing problem in the United States.  Taxpayers are harmed when identity thieves file fraudulent tax documents using stolen names and Social Security numbers.”  This report noted that in 2010, the IRS identified over 245,000 identity theft incidents that affected the tax system.  What is shocking is that in 2008 and 2009 the number of incidents was only 51,702 and 169,357 respectively.

Identity thieves harm taxpayers through employment and refund fraud.  With refund fraud, an identity thief uses a taxpayer’s name and Social Security Number to file for a tax refund.  In employment fraud, an identity thief uses a taxpayer’s name and SSN to obtain a job.  When the thief’s employer reports income to the IRS, the taxpayer appears to have unreported income on his or her return, leading to enforcement action by the IRS against the unsuspecting taxpayer.

Using the techniques described in last week’s post can save you time and money with the IRS.  The report notes that “the name and Social Security Number information used by identity thieves to commit refund or employment fraud are typically stolen from sources beyond the control of the IRS.  IRS officials stated that they are unaware of any incidents where information was stolen from IRS and used to commit these types of crimes.

Here are 5 Things the IRS thinks every taxpayer should know about identity theft:

1.  IRS does not initiate contact with the taxpayer by e-mail.

2.  If you receive a scam e-mail claim to be from the IRS, forward it to the IRS at phishing@irs.gov.

3.  Identity thieves get your personal information by many different means, including: stealing your wallet or purse, posing as someone who needs information about you through phone calls or e-mail; looking through your trash for personal information, and accessing information you provided to an unsecured Internet site.

4.  If you discover a website that claims to be the IRS but does not begin with ‘www.irs.gov’, forward that link to the IRS at phishing@irs.gov.

5.  If you believe you may be affected by identity theft, you may provide the IRS with proof of your identity: which includes your Social Security card, driver’s license, or passport, along with a copy of a police report and/or a completed Form 14039, Identity Theft Affidavit.  Or you can contact the IRS Identity Protection Specialized Unit at 800-908-4490.

We have successfully defended identity theft victims. If you have been a victim of identify theft, contact us if you wish to learn more about how we can help clear your name with the IRS.About the Author: RocketRelief.com is the market and technology leader in tax and <a rel="nofollow" href="http://www.rocketrelief.com">tax debt solutions</a>. We solve tax debt problems. We enable taxpayers to access unparalleled tax services from a network of the best tax professionals in the industry. Our clients realize maximum value through our success-driven technology, highly responsive "fanatical" support team, and superior intelligence surrounding IRS and state tax problems. Article Source: <a href='http://www.articleseen.com/Article_Identity-Theft-Leads-to-a-Rise-in-Tax-Fraud_64375.aspx'> http://www.articleseen.com/Article_Identity Theft Leads to a Rise in Tax Fraud_64375.aspx</a>

Article Source : http://www.articleseen.com/Article_Identity Theft Leads to a Rise in Tax Fraud_64375.aspx

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RocketRelief.com is the market and technology leader in tax and tax debt solutions. We solve tax debt problems. We enable taxpayers to access unparalleled tax services from a network of the best tax professionals in the industry. Our clients realize maximum value through our success-driven technology, highly responsive "fanatical" support team, and superior intelligence surrounding IRS and state tax problems.

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