Wednesday, February 4, 2015

Tax-Related Identity Theft and Income Tax Refunds


According to the Federal Trade Commission, tax-related identity theft topped their list of identity

theft complaints for 2014. In this type of identity theft, criminals file a fake tax return in

someone else’s name, using that person’s Social Security Number, in order to receive the tax

refund themselves. The FTC says, “The year 2014 marks the fifth consecutive year in which tax-

related identity theft topped the list of identity theft complaints, with tax identity theft accounting

for nearly a third of all identity theft complaints to the FTC.”


“When it comes to tax identity theft, consumers’ best defense is to file their taxes as early as

possible to get ahead of scammers....” If you become a victim of tax identity theft, immediately

contact the FTC at http://ftc.gov/complaint to file a complaint. Also call the IRS at (800) 908-

4490.


Some young taxpayers may not be aware that, even if they do not owe any taxes, they should still

file yearly federal and state income tax forms since they are likely to receive a refund for taxes

withheld by their employer (if they did not make enough money to pay taxes). If you have not

filed your taxes in the last three years, it is not too late to do so as long as you do it right away.

(You have up to three years to collect tax refunds.) Also check with your State Treasurer’s

Office to see if the IRS has already turned over funds to them as lost property.


READERS, what do you think?

1. What are you or your family doing to avoid tax identity theft? Have you made plans to

file early?


Reference:

Mayfield, J. & Toporoff, S. (2015, January 26). Tax ID Theft Tops FTC Complaints in 2014;

        IRS Imposter Complaints Up More than 2,300 Percent. [Press release]. Federal Trade

        Commission. Retrieved January 27, 2015, from http://www.ftc.gov/news-events/press-

        releases/2015/01/tax-id-theft-tops-ftc-complaints-2014-irs-imposter-complaints.

No comments:

Post a Comment