Victim of Tax Fraud or Concerned You Could Be? What Should You Do?

Victim of Tax Fraud, Concerned, What should you do?

If you've believe you're a victim of tax fraud, there are steps you can take to report this and implement additional protections.

If your Social Security number (SSN) or individual tax identification number (ITIN) was stolen, immediately report it to IdentityTheft.gov.

Types of ID Theft Tax Fraud:

• Refund Fraud
• Employment Fraud
• Other Forms of Tax-Related Identity Theft

How to Recognize Tax Identity Theft

• Unsolicited Notices from the IRS
• Discrepancies on Tax Transcripts
• IRS Notices About Suspicious Activity
• Tax Returns Rejected or Denied

Concerned your SSN has been compromised?

• Check out our client guide for more details.
• Additionally, you can Report to the FTC. Check out our client guide for more details.
• Obtain an IP PIN (Identity Protection PIN). The IRS can assign a six (6) digit PIN that is known only to you and the IRS to prevent someone else from filing a tax return using your SSN or Tax Payer Identification Number. These steps can be found here.

Reporting to the IRS

• The IRS has steps you should follow which may include completing an Identity Theft Affidavit, requesting copies of Fraudulent Tax Returns, or how you can inquire if a dependent was fraudulently claimed on someone else's tax return. These steps can be found here.

Action Plan and Next Steps for notice with CP01E:

• First Step: Contact IRS to acquire on the CP01E Notice

What Potentially Happened:

• SSN Misuse: The IRS detected that your SSN was used on a Form W-2 associated with employment, but it doesn't necessarily mean it was intentional or that you've been a victim of identity theft.
• No Direct Tax Impact: Importantly, receiving a CP01E notice doesn't mean that your tax return or refund has been affected.
• Potential Risk: The notice serves as a proactive alert because misuse of your SSN for employment could expose you to other forms of identity theft or fraud, potentially affecting your credit and finances.

No Immediate Tax Action Needed:

• You generally don't need to take any action regarding your taxes when you receive a CP01E notice.

Protect Your Accounts:

• The IRS recommends several steps to protect yourself from potential identity theft:

Monitor your credit reports and financial accounts:

• Look for any unauthorized activity or unfamiliar accounts.

Place a fraud alert on your credit reports:

• This makes it more difficult for someone to open new accounts in your name.

Consider an Identity Protection PIN (IP PIN):

• This PIN adds an extra layer of security to your tax account.
• An identity protection PIN(IP PIN) is a six-digit number that prevents someone else from filing a tax return using your Social Security number (SSN) or individual taxpayer identification number (ITIN)
• It acts as a unique identifier that only you and the IRS know.

Report to the Federal Trade Commission (FTC):

• If you suspect identity theft, report it to the FTC.

Recommended to create my SSA account - this is used to order a new social security card through online form.
The main purpose of having a Social Security Administration (SSA) account (also known as a "my Social Security" account) is to provide a convenient and secure way to manage your Social Security information and interact with the SSA online.

• It allows you to access your Social Security Statement, verify your earnings record, estimate future benefits, and manage your Social Security benefits

Moving Forward: You don’t need to take any action for your taxes at this time. Continue to file all applicable tax returns timely.

Here's what scammers can do if they have your SSN:

• Get a fraudulent driver's license....
• Receive medical care using your benefits....
• Open a phone account....
• Commit crimes that will be on your record....
• Steal your benefits and Social Security checks....
• Set up utilities using your identity....
• File a fraudulent tax return....