TAX TALK – IRS RESOURCES FOR Identity Protection
Identity theft is increasingly becoming a frustration and cumbersome process for the victims. Identity theft often starts outside of the tax administration system when someone's personal information is stolen or lost. Identity thieves may then use a taxpayer's identity to fraudulently file a tax return and claim a refund. In other cases, the identity thief uses the taxpayer's personal information in order to get a job or apply for a loan or credit card. The legitimate taxpayer may be unaware that anything has happened until they file their return later in the filing season and discover two returns have been filed using the same Social Security number. Below are some of the resources and tips available from the Internal Revenue Service:
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The IRS does not initiate contact with taxpayers by email or social media tools to request personal or financial information. The IRS does not send emails stating you are being electronically audited or that you are getting a refund. This includes any type of electronic communication, such as text messages and social media channels.
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If you receive a scam email claiming to be from the IRS, forward it to the IRS at [email protected]
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To learn how to identify a secure website, visit the Federal Trade Commission's website
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If you discover a website that claims to be the IRS but does not begin with 'www.irs.gov', forward that link to the IRS at [email protected].
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If your tax records are not currently affected by identity theft, but you believe you may be at risk due to a lost wallet, questionable credit card activity, or credit report, you need to provide the IRS with proof of your identity. You should submit a copy of your valid government-issued identification, such as a Social Security card, driver's license or passport, along with a copy of a police report and/or a completed IRS Form 14039, Identity Theft Affidavit, which should be faxed to the IRS at 1-855-807-5720. Please be sure to write clearly.
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While preparing your tax return for electronic filing, make sure to use a strong password to protect the data file. Once your return has been e-filed, save the file to a CD or flash drive and then delete the personal return information from your hard drive
Below are some steps that may be taken to minimize the chance of becoming an identity theft:
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Don’t carry your Social Security card or any document(s) with your SSN on it.
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Don’t give a business your SSN just because they ask. Give it only when required.
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Protect your financial information.
Check your credit report every 12 months.
Secure personal information in your home.
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Protect your personal computers by using firewalls, anti-spam/virus software, update security patches, and change passwords for Internet accounts.
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Don’t give personal information over the phone, through the mail or on the Internet unless you have initiated the contact or you are sure you know who you are dealing with.
There are various limitations and thresholds for many of the tax deductions. Please consult your CPA/Tax attorney/or tax consultant for proper guidance with the above subject matter.
DISCLAIMER: In accordance with IRS Circular 230, the above information is not intended or written to be used, and cannot be used as or considered a "covered opinion" or other written tax advice and should not be relied upon for the purpose of avoiding tax-related penalties under the Internal Revenue Code; promoting, marketing, or recommending to another party any transaction or tax-related matter(s) addressed herein; for IRS audit, tax dispute or other purposes.
Suresh Kumar, CPA, MBA is the Principal of Kumar Consulting, PA, a CPA & Consulting firm licensed in the states of FL, KS, and MO and can be reached at (813) 421-5068, e-mail [email protected] or visit www.kumarconsultingcpa.com