Identity theft occurs when someone uses your personal information, such as your name or Social Security number, to commit fraud or other crimes. Generally, identity thieves use someone’s personal data to steal his or her financial accounts and run up charges on the victim’s existing credit cards, but the IRS has identified a type of fraud related directly to your tax records.
• Undocumented workers or other individuals may use your Social Security number to get a job. That person’s employer would report W-2 wages earned using your information to the IRS, so it might appear that you did not report all of your income on your return.
• An identity thief may file a tax return using your Social security number to receive a refund or stimulus payment. If the thief already filed a return using your Social Security number, the IRS will believe that you already filed and received your refund, and the return you just submitted is a second copy or duplicate.
If you do receive a notice from the IRS that leads you to believe someone may have used your Social Security number fraudulently, please notify the IRS immediately by responding to the name and number printed on the notice or letter.
Be alert to possible identity theft if the IRS notice or letter states that:
• more than one tax return was filed, or
• IRS records indicate you received wages from an employer unknown to you.
If you receive such a notice, contact the IRS either by phone or in writing as directed in that notice. IRS tax examiners will work with you and other agencies—such as the Social Security Administration—to help resolve the problem.
Phishing for Taxpayer Information:
Phishing is the act of sending an e-mail to a user falsely claiming to be an established, legitimate enterprise in an attempt to scam the user into surrendering private information that will be used for identity theft.
Be aware that IRS does not initiate taxpayer communications through e-mail. The IRS does not request detailed personal information through e-mail. The IRS does not send e-mail requesting your PIN numbers, passwords, or similar access information for credit cards, banks, or other financial accounts.
If you receive an e-mail from someone claiming to be the IRS or directing you to an IRS site,
• Do not reply.
• Do not open any attachments. Attachments may contain malicious code that will infect your computer.
• Do not click on any links.
If you receive an e-mail or find a website you think is pretending to be the IRS, forward the e-mail or website URL to the IRS at phishing@irs.gov. You can forward the message as received or provide the internet header in the e-mail. The internet header has additional information to help the IRS locate the sender. After you forward the e-mail or header information to the IRS, delete the message.
Though you can’t prevent identity theft entirely, you can minimize your risk.
Protect your Social Security number:
• Don’t carry your social security number with you; leave it in a secure place.
• Only give your Social Security number when absolutely necessary. Don’t give a business your Social Security number just because they ask for it. Find out why before giving it out.
• Your employer and financial institution may need your Social Security number for wage and tax reporting purposes, but for others, your Social Security number may not be essential. Ask why your number is needed and if other types of identifiers can be used.
• Never give your social security number in response to any email request. The IRS, banks, and credit card companies will never ask you for your Social Security number via email. Consider any such request to be a scam and report it immediately.
Additional Information:
For more information on identity theft and your tax records, please visit www.irs.gov, and use the words “Identity Theft” in the search block. See also:
IRS Identity Theft and Your Tax Records — http://www.irs.gov/individuals/article/0,,id=136324,00.html
Suspicious Emails and Identity Theft — http://www.irs.gov/newsroom/article/0,,id=155682,00.html
Identity Theft Email Scams a Growing Problem — http://www.irs.gov/newsroom/article/0,,id=177062,00.html
Social Security Administration — Identity Theft http://www.ssa.gov/pubs/idtheft.htm
Identity Theft and Your Social Security Number — http://www.ssa.gov/pubs/10064.html
For information on finding a tax preparation service, see our website
Further advice and information regarding certified accountants can be obtained by contacting the Institute of Chartered Accountants in England and Wales, PO Box 433, The Chartered Accountants Hall, Moorgate Place, London EC2P 2BJ, Tel: 020-7920-8100, http://www.icaew.co.uk/.
