Momentum - Business to Business Online Magazine MOMENTUM April 2018 | Page 32

’Tis The Season For Tax Identity Theft By: Becky Sill, CIPA LegalShield | IDShield, Independent Associate [email protected] Tax identity theft occurs when someone else uses your Social Security number to file a fraudulent return to get a tax refund, or your personal information is used to secure employment, which can make it appear you earned more income than you actually did. After years of identity theft and tax fraud increases, the Internal Revenue Service (IRS) has reported a substantial decline in the number of taxpayers who reported that they had been a victim of identity theft. The decline is a result of a partnership between the IRS, state tax agencies, tax preparers, and other tax industry experts. The decline in tax identity theft incidents is certainly good news, but those who do find themselves the victim of tax fraud or tax identity theft face many challenges, such as delayed tax refunds and a lengthy, complex resolution process. According to the IRS, a typical tax identity theft case can take about 120 days to resolve. The IRS is committed to protecting taxpayers from tax refund fraud and the effects of tax identity theft. In addition to an emphasis on education for both consumers and tax preparers, this tax filing season marks the introduction of a “Verification Code” box, which will include