Tax-Related Identity
Theft & Scams are
Skyrocketing . . .
Stay Protected
For many of us, identity theft, unfortunately, is an all-too-familiar topic.
Victims of identity theft and, in particular, tax-related identity theft and
tax scams, continue to increase at alarming rates. Tax-related identity theft
remains one of the biggest challenges facing the IRS … and taxpayers.
As the 2017 tax filing season rapidly approaches and tax return filing and
refund frauds are likely to increase, a heightened sense of awareness is
vital. If you lose your wallet, have mail stolen or are the victim of a data
breach, you could be at risk. Additionally, if you receive notice from the
IRS that you may be a victim of identity theft or your tax return is unable to
be processed; your tax refund may be in jeopardy.
If you believe you are a victim of identity theft, you can notify the IRS
that you are either an actual or potential victim (in cases of a lost or stolen
wallet, questionable credit card activity or credit report, etc.) by filing an
IRS Identity Theft Affidavit so that the IRS will mark your account and
issue an Identity Protection Personal Identification Number (IP PIN).
These six-digit IP PIN numbers are unique to each taxpayer. They help to
prevent the misuse of the taxpayer's Social Security number on fraudulent
tax returns and to potentially avoid tax refund processing delays and
erroneously issued tax refunds.
Unfortunately, tax-related identity theft is only one of many forms of
tax-related scams impacting taxpayers. In the past year, the number of
individuals affected by a rapidly growing IRS phone scam has skyrocketed,
and millions of dollars have been swindled from its victims, prompting the
IRS to issue warnings to the public. Callers fraudulently claim to be the
IRS, often using fake names
and fake IRS badge numbers to identify themselves. The caller insists that
delinquent taxes are due and they must be paid immediately through a pre-
loaded debit card or wire transfer. If the taxpayers resist, the caller becomes
aggressive and abusive, threatening to freeze bank accounts, confiscate
property or possible arrest. Alternatively, some have reported the scammers
called claiming a refund is due, trying to obtain banking or other private
financial information.
Scammers are able to manipulate caller ID systems to deceptively show
that the call originated from an IRS number. The scammers, in many cases,
also have the taxpayer's personal information, such as the last four digits of
their Social Security number. In many cases, follow-up e-mails and phone
calls are made to make the need of payment more urgent, and attempt to
provide a sense of legitimacy.
If you receive a call from anyone claiming to be from the IRS, be
aware that:
• The IRS will not call a taxpayer about tax delinquencies without first
mailing an official notice;
• The IRS will not demand, via phone, that a taxpayer immediately settle
delinquent tax obligations without offering the opportunity to appeal the
amount owed;
• Taxpayers are not required to use a specific payment
method when making payments—a variety of options are
always available;
• Taxpayers will not be asked for credit or debit card information over the
phone; and
• The IRS will not threaten a taxpayer with local law enforcement action
for not paying the requested amount.
Additionally, the IRS does not presently use e-mail, text messages or
social media to discuss personal tax matters. If you are in receipt of such
a message, it is prudent to not open any attachments or click on any links
contained in the message. Instead, forward the e-mail to [email protected]
and consider contacting the Tax Accounting Group (TAG).
A sound defense against tax and other forms of identity theft is to maintain
a good offense. A few basic strategies to protect yourself from all forms of
identity theft include, but are not limited to:
• Protect your personal information. Store your Social Security number in
a safe place, not your wallet.
• Shred documents and mail that contain personal information but are
no longer needed, such as credit card offers and statements, prior to
discarding them.
• Check on all financial accounts regularly, as well as timely report and
investigate any suspicious or unfamiliar activity.
• Change your passwords to online banking and credit card accounts
regularly. If you must write them down, store them, as well as all
financial documents, in a safe place; do not share your passwords with
anyone.
• Do not click on links in e-mails where you are unfamiliar
with the sender or which appear suspicious, even if from a
friend or relative.