IRS Identity Theft: How to Protect Yourself and What to Do if You’ve Been Breached
IRS identity theft is a growing concern, and it can wreak havoc on your financial life if you're not careful. Imagine filing your taxes, only to discover that someone else has already filed using your Social Security Number (SSN). The consequences are severe—you could face delayed refunds, IRS penalties, or even fraudulent activity on your financial accounts. Identity theft is not only stressful, but it can take months, if not years, to fully resolve.
There are different types of IRS identity theft, from thieves stealing your SSN to fraudulent tax returns being filed in your name. Thankfully, there are ways to protect yourself, such as being vigilant about your personal information and opting for an IRS Identity Protection Personal Identification Number (IP PIN). This unique code adds an extra layer of security to your tax return, ensuring that only you can file taxes under your SSN. And if you’ve already been a victim of identity theft, taking action quickly can minimize the damage. It’s crucial to file a report, contact the IRS, and work with a licensed tax professional to guide you through the recovery process.
Types of IRS Identity Theft:
- Stolen Social Security Number: Thieves may use your SSN to file a tax return and claim a refund before you get the chance to file. This can result in your tax return being flagged as fraudulent by the IRS, causing delays in processing your legitimate return.
- Fraudulent Tax Returns: If someone files a tax return under your name, they may attempt to claim deductions, credits, or refunds that don’t belong to them. This type of identity theft is hard to catch until you file your taxes and find out that your return has already been submitted.
How to Protect Yourself:
- Secure Your Personal Information: Be cautious about where and how you share your Social Security Number and financial details. Avoid emailing sensitive documents or leaving personal information unprotected online. Always shred old tax documents before discarding them.
- Use an IRS IP PIN: An IRS Identity Protection PIN is a six-digit code that only you know. It’s required when filing your tax return and helps prevent someone else from filing under your name. Applying for an IP PIN adds an additional layer of protection to your tax return.
What to Do If Your Identity Has Been Breached:
- Contact the IRS Immediately:If you suspect identity theft, the first step is to contact the IRS and report it. You may need to file Form 14039, Identity Theft Affidavit, to alert the IRS that your identity has been compromised.
- Work with a Licensed Tax Professional: Recovering from identity theft can be a long and complicated process. A licensed tax professional can help you navigate the recovery steps, communicate with the IRS on your behalf, and ensure your tax return is handled correctly moving forward.
Conclusion:
Identity theft is a serious issue that can disrupt your life, but you don’t have to face it alone. Taking preventative steps like securing your personal information and applying for an IRS IP PIN can protect you from fraud. If you do fall victim to identity theft, acting fast and working with a licensed tax professional will help minimize the damage and get you back on track.
At TaxOnTrack, we take your security seriously. Our team of licensed professionals can help you navigate the IRS identity theft recovery process, from reporting the breach to securing your tax records. With our guidance, you can rest assured that your financial information is in safe hands. Don’t wait—if you’ve been a victim of identity theft or want to learn more about protecting yourself, contact TaxOnTrack today!
