Many people are aware of the dangers of identity theft, but they may not realize how quickly it is growing or the numerous areas in which it can occur. Did you know, for example, that identity theft reports to the Federal Trade Commission umped by nearly 50 percent in 2015, to almost half a million claims? Here’s another surprising statistic: tax refund fraud is considered the biggest and fastest-growing kind of identity theft. If you’re not sure how to respond to or protect against tax identity theft, the Pennsylvania Institute of Certified Public Accountants offers some timely pointers.
Be alert if you get an IRS notice
One example of tax identity theft involves a scammer using your Social Security number to file a false return and collect a tax refund they don’t deserve. You may find out that you’re a victim only after you receive a notice from the IRS stating that more than one tax return was filed with your information. You should respond immediately by following the instructions in the notice. If you believe you are at risk of identity theft due to lost or stolen personal information, you should contact the IRS Identity Protection Specialized Unit at (800) 908-4490 immediately so the agency can take action to secure your tax account.
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