Tax identity theft is when someone other than you files a tax return using your Social Security number (SSN). Individuals may commit this crime to avoid paying money they owe to the IRS or to receive a fraudulent refund. When your SSN has been used, it can take longer for you to file your taxes and to get your legitimate refund. It may also leave you susceptible to other identity-theft crimes. Fortunately, if you encounter this problem, there are steps you and your accountant can take to protect yourself and your finances.

What Are Common Signs of Tax Identity Theft?

In many cases, you won’t know your SSN has been used for tax purposes until you file your own. Typically, the IRS or your tax adviser will be unable to e-file your return if your identity has already been used. However, the IRS may also notify you by sending a letter that recognizes suspicious activity. You might also receive notices asking you to pay taxes on income you didn’t earn from employers you don’t recognize.

How Can You Stay Protected?

Guarding your SSN is one of the best ways you can prevent identity theft. Specifically, you should keep your Social Security card in a secure lockbox and only share it with trustworthy parties—such as the IRS or your accountant.

Since SSNs are commonly retrieved through digital data, it’s also important to practice smart Internet security strategies. For instance, you should use a complex password and change them often, avoid suspicious links, and install virus removal software.

What Should You Do If You’re a Victim of Tax Identity Theft?

If you are a victim of tax identity theft, you should first file a complaint with the Federal Trade Commission. Next, contact a national credit bureau, as well as your financial institutions, to place a fraud alert on all your accounts.

To make sure the IRS is aware of the situation, fill out an Identity Theft Affidavit (Form 14039) and submit it by mail. Be sure to comply with any official requests they may make in response to your case.

While you may not be able to file taxes online, you should still do so by mail. Work with your accountant to complete tax return preparation by paper and submit the necessary forms along with the appropriate payment.  

Whether you are concerned about tax identity theft or want to avoid it, Burch & Associates can help provide you with peace of mind. Offering comprehensive tax services in Lincoln, NE, these accountants will be able to help complete and file your return by mail. They can also assist with tax return preparation to ensure your information remains both accurate and secure. To learn more about these capabilities, visit this accounting firm online. If you’d like to speak with a friendly Enrolled Agent, call (402) 483-4791.