Tax-related identity theft occurs when someone else uses your personal information to file a tax return. This can cause your return to get rejected and could lead to other problems, such as IRS tax debt that is due to a fraudulent filing.
Take the following steps to reduce the risk of ID theft or deal with a suspected case of tax ID theft.
When you submit your return, the IRS checks whether it has already accepted a return with your Social Security Number (SSN). If you have dependents, their SSNs will also be checked to see if they have been claimed by another taxpayer.
If someone else has used your SSN or your dependent’s SSN, your return will be rejected. The IRS does have systems in place to catch suspicious returns, but they can’t catch every fraudulent return.
By filing early on in the tax season, you can stay one step ahead of potential identity thieves who may try to use your SSN to get a fraudulent tax refund.
Protect Your Information
File your return using a tax software you trust or a professional tax preparer. Be wary of friends or unlicensed tax preparers who offer to help you with your return.
Other types of identity theft can also lead to tax identity theft, so protect your information by shredding documents and don’t get personal information to unknown callers or email addresses.
Letter 4883C is an IRS notice that lets you know about potential ID theft on your account. The IRS sends this notice when a suspicious return is submitted using your personal information.
Follow the steps on this notice and confirm your identity with the IRS. You can then tell them whether or not you actually filed the return in question. If not, you may need to file a paper return for the current tax year.
If your return is rejected because someone else used your SSN, you will have to take the following steps:
- File a paper return by mail for the current tax season. You can’t e-file because your return will be rejected every time.
- Complete and submit Form 14039, Identity Theft Affidavit along with your paper tax return.
- Wait for a response and further instructions from the IRS
You should also consider contacting a tax attorney to sort out and resolve your tax ID theft issues.
The Gartzman Law Firm can help you resolve tax identity theft issues and tax debt problems. Use our contact form to request a consultation with an Atlanta tax resolution attorney.