Imagine opening your mailbox to find that someone’s already filed your tax return—and it wasn’t you! Tax-related identity theft is a real problem, but the good news is, there are steps you can take to protect yourself and keep those thieves from making off with your refund. Remember, your accountant can be a key player in spotting and addressing these issues early.
Signs of Identity Theft
You might not realize you’ve been a victim until the IRS gets in touch.
Here are some red flags:
- The IRS sends you a letter about a return you didn’t file.
- You can’t e-file because someone already used your Social Security number.
- You get a tax transcript you never asked for.
- An IRS notice arrives about an online account you didn’t create.
- IRS records show wages from a job you’ve never had. (If only you were getting that paycheck!)
- You’re assigned an Employer Identification Number (EIN) you didn’t request.
Your accountant can help spot these warning signs early, especially if you’re seeing unusual IRS correspondence or rejected filings. They can also help confirm and resolve these red flags by communicating directly with the IRS on your behalf.
Steps to Take if You’re a Victim
If your Social Security number has been compromised, take action right away:
- Respond to any IRS notices immediately using the contact info provided.
- If your e-file return is rejected, file Form 14039 (Identity Theft Affidavit), attach it to your paper return, and mail it in.
- Visit IdentityTheft.gov to secure your accounts and follow the next steps.
- Still stuck? Call the IRS Identity Theft Assistance line at 800-908-4490.
If you work with an accounting firm, inform your accountant immediately. They can assist in tracking the fraud and managing IRS communications, often streamlining the response process.
Dealing with Fraudulent Returns and Claimed Dependents
If someone files a fraudulent return in your name, you can request a copy from the IRS. And if someone else claims you’re dependent on their tax return, the IRS has resources to help you resolve that too. Your accountant can support you through this process, ensuring the documentation is filed correctly to avoid further complications.
Handling Data Breaches
Not all data breaches lead to tax fraud, but if your Social Security number is compromised, it’s smart to submit Form 14039, especially if your e-file return is rejected. Better safe than sorry!
Employment-Related Identity Theft
If someone’s using your Social Security number to get a job (not to file taxes), check out the IRS Guide to Employment-Related Identity Theft for what to do next.
Protect Your Information
Want to make things harder for identity thieves? Here’s what the IRS recommends:
- Use strong, unique passwords—no more “password123,” please.
- Enable multi-factor authentication for extra security.
- Back up important files regularly. Future you will thank you!
Phishing Scams
Be cautious of phishing emails or texts asking for personal info. Don’t take the bait and report suspicious IRS-related emails to Phishing@irs.gov.
Identity Protection PIN
For an extra layer of protection, sign up for an Identity Protection PIN. This six-digit PIN makes it tougher for scammers to file a return in your name.
Help is Available
Taxpayer identity theft is a hassle, but it’s one you can avoid with a few smart precautions. Keep your personal information secure, be on the lookout for suspicious activity, and always remember—the IRS won’t ask for personal information via email, text, or social media. If you’re unsure or something doesn’t feel right, talk to your accountant or contact the IRS directly. With caution, you can keep your tax return safe and ensure it ends up right where it belongs—back in your account.
More Information
If you have questions, contact us to discuss your situation.
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Andrew Labeaume
Andrew LaBeaume is a seasoned Tax Manager at Smith Patrick CPAs, based in Saint Louis, MO. Since beginning his career in 2002, Andrew has built extensive expertise in tax planning, preparation, and review of individual, business, and trust tax returns. He holds a Bachelor of Science and a Master’s in Accounting from the University of Central Florida, and is a certified public accountant (CPA). Andrew’s commitment to staying current with tax laws ensures top-notch compliance and tailored tax planning for his clients.
About Smith Patrick CPAs
Smith Patrick CPAs is a boutique, St. Louis-based, CPA firm dedicated to providing personal guidance on taxes, investment advice and financial service to forward-thinking businesses and financially active individuals. For over 30 years, our firm has focused on providing excellent service to business owners and high-net worth families across the country. Investment Advisory Services are offered through Wealth Management, LLC, a Registered Investment Advisor.