Thieves have been an issue since the dawn of civilization. However, their schemes have become more elaborate as of late. In fact, the most common form of theft today is identity theft. Practically every person I speak with has either been a victim of identity theft or can name a person that has. Their latest method of utilizing your identity to make money is through the IRS. Thieves are getting enough personal information (e.g. name, social, date of birth) to file a tax return as though they were you. They then get a “refund” from the IRS. Most will not realize that they have been compromised until they attempt to file their taxes (This exact situation has occurred to me personally, as well as to friends, family, and coworkers). The follow up questions when people hear this for the first time are, ”How did they get my information” and “What do I do if it happens to me?”
How Did They Get My Information?
One of the most common ways that thieves are getting access to our personal information is by us giving it to them. In fact, sometimes they will actually call you directly. The thief will call you and it will typically go in one of two ways. You will receive a call from someone and your caller ID will display that it is either from the IRS or some law enforcement agency. In the case of the IRS, they will request your personal information because you didn’t file your taxes correctly. Some will attempt to just get the personal information, while others will take it a step further and attempt to get funds directly from you. In the case of the law enforcement agency, they will claim that they are attempting to collect debts owed to the IRS. If that debt is not paid they will claim that you will be subject to legal ramifications ranging from seizing of assets to jail time. Unfortunately, the aforementioned methods are most commonly used on elderly victims in an effort to scare and/or intimidate them into giving personal information.
What Do I Do If It Happens To Me?
If you receive a call from someone claiming to be with the IRS or law enforcement agency simply hang up. If you are concerned that you may owe taxes to the IRS, always contact them directly. The IRS has a customer service line that is available to answer any questions you may have. More than likely you will find that you were the target of a scam. The next step is to reach out to the Treasury Inspector General for Tax Administration to report the incident. The more details they have the greater likelihood they will be able to prevent these scams in the future.
However, if you find yourself in the precarious situation of receiving a letter from the IRS stating a refund has been filed in your name, or you are unable to file your taxes due to someone fraudulently doing so, you should contact the IRS Identity Protections Specialized Unit immediately. They will then be able to walk you through the necessary steps to rectify the situation. I have provided the contact numbers for all the aforementioned departments of the IRS in the “Eye on the Numbers” column to the left.
Please share this information with your friends and family. Especially those you believe may be susceptible to potential thieves. The time and aggravation of sorting out your personal finances after your identity has been compromised can be immense. After all, the best defense is a good offense.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
