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.

Louisville Men Involved in Credit Card Fraud

 Indiana State Police recently pulled over two Louisville men after “an unsafe lane change” and found 170 credit cards in a search of their car. The two men were arrested and charged with fraud. Federal officials say the cards had been stolen. More charges could be filed.

Unfortunately, this case is not unusual. Credit card fraud is common and is a major part of identity theft. The Federal Trade Commission’s Consumer Sentinel Network Data Book for January – December 2013 found that 290,056 Americans suffered identity theft that year. About one-fourth of those cases each year involve credit card theft only.

If you have credit cards, be aware that you can protect yourself against fraud. Guard your credit card and personal information closely. Be certain when shopping on the Internet that you are dealing with a legitimate and safe Web site. When charging to your card in person, make sure you get your card back from your clerk or wait person. Don’t throw away credit card receipts without shredding them first. And examine your monthly credit card bill immediately upon receiving it to catch problems early.

Also be sure to request your free, annual credit report from the three major credit reporting bureaus – Equifax, Experian, and TransUnion – once a year. You can even get a free report once every four months by requesting it from one bureau at a time. However, in order to make the process of requesting a free, annual credit report as simple as possible, the federal government has established an official Web site, https://www.annualcreditreport.com/, where consumers may request their report from all three agencies at one time. Just be sure to avoid other Web sites that advertise access to your free report. Using those sites may lead to unexpected charges to your credit card.

Even if you do not have a credit card yourself, and have no credit history that you know of, your identity can still be stolen without your knowledge. It is better to be safe than sorry. Request a credit report regularly to be sure that criminals are not taking advantage of you.

READERS, what do you think?

1.    Have you ever checked on your credit report? If so, what did you find?

2.     What do you think are the best ways to protect yourself against credit card fraud and identity theft?

References:

WDRB News. (2015, January 25). Two Louisville men arrested for fraud after police find over 170 credit cards during traffic stop. Retrieved January 26, 2015, from http://www.wdrb.com/story/27934840/two-louisville-men-arrested-for-fraud-after-police-find-over-170-credit-cards-during-traffic-stop.

Federal Trade Commission. (2014, February). Consumer Sentinel Network Data Book for January – December 2013. Retrieved January 28, 2015, from http://www.ftc.gov/system/files/documents/reports/consumer-sentinel-network-data-book-january-december-2013/sentinel-cy2013.pdf.

Dow Jones & Company, Inc. (n.d. [2014]). Identity Theft & Credit Card Fraud – How to Protect Yourself. Wall Street Journal online. Retrieved January 26, 2015, from http://guides.wsj.com/personal-finance/credit/how-to-protect-yourself-from-identity-theft/.

Education Leads to a Longer Life

Research has found a link between education and lifespans. Those who have more education typically have longer lives. This link has been consistently found in a number of countries, leading to questions of what it is about education that is so good for us.

For one thing, exercising your brain with new knowledge every day is considered to be very healthy. We all need to keep our minds working. Those who are less educated may have more difficulties planning for their future.

Of course, we also know that those with higher levels of education usually make more than people with less education, and money does carry benefits to those who have it. Those who have more money are better able to take care of themselves and to afford insurance to pay for needed healthcare.

Unfortunately, too many people cannot continue their education because they cannot afford it. This prevents families who have less money from doing all they should be able to do to improve their situations. But there are ways in which opportunities for education and training can reach more people.

In this week’s State of the Union speech, President Obama discussed a plan for providing free tuition for those attending community college. Obama mentioned that 40 percent of college students attend community college. Those who want to hold costs down will be glad to know that the president is not suggesting a totally free ride. Students will have to keep their grades up and graduate on time in order receive the free tuition. Within these limits, free community college will allow students a chance for higher education and training for a better career, which otherwise would be out of reach for many low-income and working parents.

It also increases students’ chances of being able to attend community college and then to transfer to a four-year institution after that. This less expensive path toward higher education can now be even more affordable.

But first, the Obama plan will have to pass a Republican House and Senate and be signed into law. Divided government insures that these hurdles must be met.

READERS, what do you think?

1.     What are your thoughts on President Obama’s free community college plan?

2.     Have you considered higher education and/or career training as the next step after high school?

3.     As things stand now, what would you have to do to be able to afford to continue your education and/or career training beyond high school?

References:

Flashman, R. (n.d. [2007, January 19]). If you want a longer life, then continue your education. [HSFPP Weekly Update # 179]. Retrieved January 21, 2015, from http://www2.ca.uky.edu/hes/fcs/hsfp/updates/2007/update0179.htm.

Transcript: Obama’s State of the Union address 2015. (2015, January 20). Washington Post. Retrieved January 21, 2015, from http://www.washingtonpost.com/politics/transcript-state-of-the-union-address-2015-remarks-as-prepared-for-delivery/2015/01/20/fd803c4c-a0ef-11e4-b146-577832eafcb4_story.html.