TAXING MATTERS
T . MARK RUSH , CPA
Partner Ham , Langston & Brezina , LLP
How to Spot Tell-Tale Signs of TAX IDENTITY THEFT
With identity thieves continuing to target the tax community , Internal Revenue Service Security Summit urges tax professionals to learn the signs of data theft so they can react quickly to protect your privacy .
The IRS , state tax agencies and the tax industry – working together as the Security Summit – is reminding tax professionals that they should contact the IRS immediately when there ’ s an identity theft issue while also contacting insurance or cybersecurity experts to assist them with determining the cause and extent of the loss .
“ There are tell-tale signs of identity theft that many can easily miss ,” said IRS Commissioner Chuck Rettig . “ Identity thieves continue to look for ways to slip into the systems of tax pros to steal data . We urge practitioners to take simple steps and remain on the lookout for signs of data and identity theft . They are a critical first line of defense against identity theft .”
Knowing the signs of identity theft is a critical step to protect taxpayer ’ s data . Protections offered by multifactor authentication and key security steps , the use of the Identity Protection PIN for taxpayer ’ s , scams to steal unemployment benefits and the dangers of phishing email / text scams , help in many instances .
Summit partners urged tax professionals to watch out for these critical signs :
• Taxpayer ’ s e-filed returns rejected because taxpayer ’ s Social Security Number was already used on another return .
• More e-file acknowledgements received than returns the tax pro filed .
• Taxpayer ’ s responded to emails the tax pro didn ’ t send .
• Slow or unexpected computer or network responsiveness such as :
• Software or actions take longer to process than usual ,
• Computer cursor moves or changes numbers without touching the mouse or keyboard ,
• Unexpectedly locked out of a network or computer .
Your tax professionals should also watch
for warning signs when taxpayer ’ s report they ’ ve received :
• IRS Authentication letters ( 5071C , 4883C , 5747C ) even though they haven ’ t filed a return .
• A refund even though they haven ’ t filed a return .
• A tax transcript they didn ’ t request .
• Emails or calls from the tax pro that they didn ’ t initiate .
• A notice that someone created an IRS online account for the taxpayer without their consent .
• A notice the taxpayer wasn ’ t expecting that :
• Someone accessed their IRS online account ,
• The IRS disabled their online account .
• These are just a few common examples . Tax pros should ensure they have the highest security possible and contact these sources if they sense or see something amiss . If you suspect you ’ re a victim of data theft , immediately report it to your local IRS Stakeholder Liaison , Liaisons will notify IRS Criminal Investigation and others within the agency on the practitioner ’ s behalf . Speed is critical . If reported quickly , the IRS can take steps to block fraudulent returns in the taxpayer ’ s names and will assist tax pros through the process .
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