Published On: March 11th, 2020Last Updated: March 25th, 20220 Comments on SCARS™ Guide: Guide to Taxpayer Identity Theft & Scams1807 words9.1 min readTotal Views: 670Daily Views: 1
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SCARS™ Guide: Guide to Taxpayer Identity Theft & Scams

Tax-Related Identity Theft Occurs When Someone Uses Your Stolen Personal Information, Including Your Social Security Number, To File A Tax Return Claiming A Fraudulent Refund

If you suspect you are a victim of identity theft, continue to pay your taxes and file your tax return, even if you must file a paper return.

Know the Signs of Taxpayer Identity Theft (Similar For Other Countries Too)

You may not know you’re a victim of identity theft until you’re notified by the IRS of a possible issue with your return.

Be alert to possible tax-related identity theft if:

  • You get a letter from the IRS inquiring about a suspicious tax return that you did not file.
  • You can’t e-file your tax return because of a duplicate Social Security number.
  • You get a tax transcript in the mail that you did not request.
  • You get an IRS notice that an online account has been created in your name.
  • You get an IRS notice that your existing online account has been accessed or disabled when you took no action.
  • You get an IRS notice that you owe additional tax or refund offset, or that you have had collection actions taken against you for a year you did not file a tax return.
  • IRS records indicate you received wages or other income from an employer you didn’t work for.

Take Action if You Are a Victim

There are steps you can take if your Social Security number or other personal information is compromised.

Tax-Related Identity Theft

If your Social Security number is compromised and you know or suspect you are a victim of tax-related identity theft, the IRS recommends these actions:

  • Respond immediately to any IRS notice: Call the number provided.
  • If your e-filed return is rejected because of a duplicate filing under your Social Security number, or if the IRS instructs you to do so, complete IRS Form 14039, Identity Theft Affidavit (PDF).  Use a fillable form at IRS.gov, print, then attach the form to your return and mail your return according to instructions.
  • Visit IdentityTheft.gov for steps you should take right away to protect yourself and your financial accounts.

See Identity Theft Victim Assistance: How It Works for more information about how the IRS can help you.

If you previously contacted the IRS and did not have a resolution, contact us for specialized assistance at 1-800-908-4490. We have teams standing by to help you.

Fraudulent Returns

If you believe someone has filed a fraudulent return in your name, you can get a copy of the return. See Instructions for Requesting a Copy of Fraudulent Returns.

Dependents

If you e-file your tax return and get a message telling you that a dependent on your return has been claimed on another tax return or their own, or if you receive an IRS Notice CP87A, you’ll need to find out why someone else claimed your dependent. Learn more at What to Do When Someone Fraudulently Claims Your Dependent.

Not all data breaches or computer hacks result in tax-related identity theft. It’s important to know what type of personal information was stolen.

If you’ve been a victim of a data breach, keep in touch with the company to learn what it is doing to protect you and follow the “Steps for victims of identity theft.” Data breach victims should submit a Form 14039, Identity Theft Affidavit (PDF), only if your Social Security number has been compromised and your e-filed return was rejected as a duplicate or the IRS instructs you to file the form.

If you believe someone has been using your Social Security number for employment purposes (as opposed to filing fraudulent tax returns for refunds in your name) see our Guide to Employment-Related Identity Theft.

Protect Your Data and Identity – Your Computer and Mobile Phone

The IRS, state tax agencies and the tax industry need your help to fight back against identity thieves. See Taxes. Security. Together.

Some tips:

  • Use security software and make sure it updates automatically; essential tools include virus/malware protection and a firewall.
  • Use encryption programs to protect sensitive digital data.
  • Treat your personal information like cash; don’t leave it lying around.
  • Use strong, unique passwords; consider a password manager.
  • Use multi-factor authentication when it’s offered.
  • Give personal and financial information only over encrypted websites; look for “https” addresses.
  • Back up your files.

Identity thieves use phishing emails to trick users into giving up passwords and other information. Don’t take the bait. Look for emails that:

  • Pose as a trusted source such as a bank or a tax provider.
  • Contain an urgent message (such as “Update your account now!”) with instructions to open a link or attachment.

And remember these good guidelines:

  • Never download software or apps from pop-up advertising.
  • Talk to family about online security for their computers and their mobile devices.

Report suspicious online or emailed phishing scams to phishing@irs.gov.

Report IRS impersonation scams to the Treasury Inspector General for Tax Administration’s IRS Impersonation Scams Reporting.

Create strong passwords that follow these simple guidelines:

  • Use long phrases that you can remember, combined with characters and numbers. Example: SomethingYouCanRemember@30.
  • Use a different password for each account and use a password manager.
  • When possible, don’t use your email address as your login ID.
  • Use two-factor authentication whenever it’s offered. This is particularly important for protecting your email, financial and social media accounts.

If you filed a federal tax return last year from one of 20 locations, you may be eligible to opt-in to the IP PIN program. The IP PIN is a 6-digit PIN that offers additional protection for your Social Security number on your tax return.

To obtain an IP PIN, you must be able to verify your identity through a rigorous Secure Access process. Review the Secure Access requirements before you start to learn more about the IP PIN and how to use the Get an IP PIN tool.

At the start of the 2020 filing season, taxpaying residents of these locations will be eligible for the IP PIN program: Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Georgia, Florida, Illinois, Maryland, Michigan, Nevada, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Rhode Island, Texas, and Washington.

How The IRS Helps

The IRS, state tax agencies and the tax industry work in coordination as the Security Summit to protect taxpayer data. Our program includes safeguards that identify suspicious returns.

The IRS never:

  • Initiate contact with taxpayers by email, text or social media to request personal or financial information
  • Call taxpayers with threats of lawsuits or arrests
  • Call, email or text to request taxpayers’ Identity Protection PINs

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TAGS: SCARS, Important Article, Information About Scams, Anti-Scam, Scams, Scammers, Fraudsters, Cybercrime, Crybercriminals, IRS Scams, Scam Victims, Tax Scams, Taxpayer Identity Theft

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FAQ: How Do You Properly Report Scammers?

It is essential that law enforcement knows about scams & scammers, even though there is nothing (in most cases) that they can do.

Always report scams involving money lost or where you received money to:

  1. Local Police – ask them to take an “informational” police report – say you need it for your insurance
  2. U.S. State Police (if you live in the U.S.) – they will take the matter more seriously and provide you with more help than local police
  3. Your National Police or FBI « www.IC3.gov »
  4. The SCARS|CDN™ Cybercriminal Data Network – Worldwide Reporting Network on « www.Anyscam.com »

This helps your government understand the problem, and allows law enforcement to add scammers on watch lists worldwide.


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Please be sure to report all scammers
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Important Information for New Scam Victims

If you are looking for local trauma counselors please visit counseling.AgainstScams.org or join SCARS for our counseling/therapy benefit: membership.AgainstScams.org

If you need to speak with someone now, you can dial 988 or find phone numbers for crisis hotlines all around the world here: www.opencounseling.com/suicide-hotlines

A Note About Labeling!

We often use the term ‘scam victim’ in our articles, but this is a convenience to help those searching for information in search engines like Google. It is just a convenience and has no deeper meaning. If you have come through such an experience, YOU are a Survivor! It was not your fault. You are not alone! Axios!

A Question of Trust

At the SCARS Institute, we invite you to do your own research on the topics we speak about and publish, Our team investigates the subject being discussed, especially when it comes to understanding the scam victims-survivors experience. You can do Google searches but in many cases, you will have to wade through scientific papers and studies. However, remember that biases and perspectives matter and influence the outcome. Regardless, we encourage you to explore these topics as thoroughly as you can for your own awareness.

Statement About Victim Blaming

Some of our articles discuss various aspects of victims. This is both about better understanding victims (the science of victimology) and their behaviors and psychology. This helps us to educate victims/survivors about why these crimes happened and to not blame themselves, better develop recovery programs, and to help victims avoid scams in the future. At times this may sound like blaming the victim, but it does not blame scam victims, we are simply explaining the hows and whys of the experience victims have.

These articles, about the Psychology of Scams or Victim Psychology – meaning that all humans have psychological or cognitive characteristics in common that can either be exploited or work against us – help us all to understand the unique challenges victims face before, during, and after scams, fraud, or cybercrimes. These sometimes talk about some of the vulnerabilities the scammers exploit. Victims rarely have control of them or are even aware of them, until something like a scam happens and then they can learn how their mind works and how to overcome these mechanisms.

Articles like these help victims and others understand these processes and how to help prevent them from being exploited again or to help them recover more easily by understanding their post-scam behaviors. Learn more about the Psychology of Scams at www.ScamPsychology.org

Psychology Disclaimer:

All articles about psychology and the human brain on this website are for information & education only

The information provided in this article is intended for educational and self-help purposes only and should not be construed as a substitute for professional therapy or counseling.

While any self-help techniques outlined herein may be beneficial for scam victims seeking to recover from their experience and move towards recovery, it is important to consult with a qualified mental health professional before initiating any course of action. Each individual’s experience and needs are unique, and what works for one person may not be suitable for another.

Additionally, any approach may not be appropriate for individuals with certain pre-existing mental health conditions or trauma histories. It is advisable to seek guidance from a licensed therapist or counselor who can provide personalized support, guidance, and treatment tailored to your specific needs.

If you are experiencing significant distress or emotional difficulties related to a scam or other traumatic event, please consult your doctor or mental health provider for appropriate care and support.

Also read our SCARS Institute Statement about Professional Care for Scam Victims – click here to go to our ScamsNOW.com website.

If you are in crisis, feeling desperate, or in despair please call 988 or your local crisis hotline.