Protect Tax Returns and Stimulus Payments from Identity Thieves

Protect Tax Returns and Stimulus Payments from Identity Thieves

The effect was instant: By the end of February 2020, tax return identity theft was currently up 751% year over year. By June, 892,777 tax returns had been flagged by the IRS for possible identity theft. Theres excellent news– you can take steps now to safeguard your identity as well as any tax refunds or stimulus payments due to you in 2021.

Over the past several years, the IRS actions against tax identity scams were successful in driving down the rate of tax scams. Identity thieves had more financial reward than ever before to devote tax and benefits fraud.

How tax return scams takes place

Tax-related identity theft can leave taxpayers disappointed and confused, but the mechanics of it are fairly easy. Identity burglars get delicate information about you including your name, address, and individual tax recognition number. They can either purchase the information from criminal sources or fool you into providing it to them through phishing or phone scams. Then they use it to file a tax return utilizing a false address or post workplace box and wait for the refund check to roll in.

Caution signs of tax return fraud

There are several indication that indicate you may be a victim of tax return fraud:

The IRS or other taxing authority declines your attempt to file your tax return.The taxing authority demands verification of your identity, showing something might be amiss.Income is reported by two or more employers, probably because somebody else has utilized your tax identification number to get work. Your return could be flagged for failing to pay enough taxes on incomes or to report all salaries. [3]

Benefit from the brand-new IRS Identity Protection PIN

In January, the IRS expanded the Identity Protection PIN Opt-In Program to all taxpayers who can validate their identities. The Identity Protection PIN (IP PIN) is a six-digit code you develop with the IRS that is only understood by the firm and you. The IP PIN offers an excellent way to lock out identity burglars and avoid them from filing deceitful tax returns using your personal information.

Resolve tax-related identity theft

If you discover you have actually become a victim, follow these steps:

Contact your demanding authority and complete identity theft paperwork.File your appropriate return using the instructions they provide you.Contact the credit bureaus and location a scams alert on your account.Respond promptly to all correspondence from your taxing authority.Keep exceptional records of all of your correspondence and filings.Add a credit monitoring and identity security service to determine any additional identity theft or fraud in other locations of your life.

We have partnered with CyberScout to use extensive identity management services. Centrals Identity Fraud Protection recommendation uses security for the disastrous effects of identity theft costs, as well as identity management and healing services. Central has actually partnered with CyberScout ™, one of the countrys top providers of identity management solutions, to provide the following services:

To discover more about the security of Identity Fraud Protection, or for an insurance quote, call your independent insurance representative.

Over the past several years, the IRS actions against tax identity scams were successful in driving down the rate of tax fraud. Identity thieves had more financial incentive than ever before to commit tax and benefits scams.

[3] “Taxpayer Guide to Identity Theft,” IRS site, page upgraded October 22, 2019.

[1] “Interim Results of the 2020 Filing Season,” Treasury Inspector General for Tax Administration, April 7, 2020.

[2] “Interim Results of the 2020 Filing Season: Effect of COVID-19 Shutdown on Tax Processing and Customer Service Operations and Assessment of Efforts to Implement Legislative Provisions,” Treasury Inspector General for Tax Administration, June 30, 2020.

Blog material courtesy of CyberScout. © 2021 CyberScout, LLC

[4] “All taxpayers now eligible for Identity Protection PINs,” IRS, January 12, 2021.
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The IRS or other taxing authority rejects your attempt to submit your tax return.The taxing authority requests confirmation of your identity, indicating something might be amiss.Income is reported by two or more companies, most likely due to the fact that someone else has actually utilized your tax identification number to gain work. In January, the IRS broadened the Identity Protection PIN Opt-In Program to all taxpayers who can confirm their identities. Centrals Identity Fraud Protection endorsement uses defense for the destructive impacts of identity theft expenditures, as well as identity management and healing services.

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