Avoid tax-related identity theft

    For 2017, the IRS, the states and the tax industry joined together to enact new safeguards and take additional actions to combat tax-related identity theft. Many of these safeguards will be invisible to you, but invaluable to our fight against these criminal syndicates. If you prepare your own return with tax software, you will see new log-on standards. Some states also have taken additional steps. See your state revenue agency’s website for additional details.
    What is tax-related identity theft? Tax-related identity theft occurs when someone uses your stolen Social Security number to file a tax return claiming a fraudulent refund. You may be unaware that this has happened until you e-file your return and discover that a return already has been filed using your SSN. Or, the IRS may send you a letter saying they have identified a suspicious return using your SSN.
    Know the warning signs. Be alert to possible tax-related identity theft if you are contacted by the IRS or your tax professional/provider about:
    —More than one tax return was filed using your SSN.
    —You owe additional tax, refund offset or have had collection actions taken against you for a year you did not file a tax return.
    —IRS records indicate you received wages or other income from an employer for whom you did not work.
    If you suspect you are a victim of identity theft, continue to pay your taxes and file your tax return, even if you must do so by paper.
    If you are a victim of identity theft, the Federal Trade Commission recommends these steps:
    —File a complaint with the FTC at identitytheft.gov.
    —Contact one of the three major credit bureaus to place a ‘fraud alert’ on your credit records:
    Equifax, www.Equifax.com, 800-525-6285.
    Experian, www.Experian.com, 888-397-3742.
    TransUnion, www.TransUnion.com, 800-680-7289.
    —Contact your financial institutions, and close any financial or credit accounts opened without your permission or tampered with by identity thieves.
    If your SSN is compromised and you know or suspect you are a victim of tax-related identity theft, the IRS recommends these additional steps:
    —Respond immediately to any IRS notice; call the number provided.
    —Complete IRS Form 14039, Identity Theft Affidavit, if your e-filed return rejects because of a duplicate filing under your SSN or you are instructed to do so. Use a fillable form at IRS.gov, print, then attach the form to your return and mail according to instructions.
    ­—If you previously contacted the IRS and did not have a resolution, contact 1-800-908-4490 for specialized assistance.

The full article is available in our e-Edition. Click here to subscribe.