To help keep tax refunds in your and your clients’s wallets and not in the bank accounts of crooks, the IRS is offering a handful of tips to prevent and lessen the damage from tax if theft.
The stealing happens when a thief uses another person’s stolen Social Security number (SSN) or Employer Identification Number (EIN) to file a tax return to obtain a fraudulent refund.
Many people first find out they are victims of identity theft when they submit their tax returns, according to the IRS.
If a taxpayer can’t file an electronic return because of the theft, they should file by paper, instead.
Tax ID theft victims should also file an IRS Form 14039, Identity Theft Affidavit by printing the form from irs.gov and snail mail or faxing it according to the instructions. Include it with the paper tax return and/or attach a police report describing the theft if available.
A victim of the theft should also report it to the Federal Trade Commission using the FTC Complaint Assistant from ftc.gov and to the Social Security Administration (ssa.gov) from the instructions available by going to the search box on the web site and typing in “identity theft”.
Additionally, people who have had their tax IDs stolen should check with the state tax agency where they submit a return to see if there are additional steps to take at the state level.
If a taxpayer is a confirmed ID theft victim, the IRS may issue them an IP PIN. The IP PIN is a unique six-digit number that the taxpayer uses to e-file their tax return. Each year, they will receive an IRS letter with a new IP PIN.