The IRS has been contacting some taxpayers, including one woman in Lawrence Kansas, requesting additional identification due to a substantial increase in identity theft and fraud relating to using a false identity to file an IRS tax return. The way the scam works is this: the identity thief uses your social security number to file a ficticious return claiming a substantial refund. The contact information and mailing address and/or depositing bank are changed, allowing the thief to take the proceeds of the refund. They don’t wait until April 15th to do so, and often by the time the actual taxpayer gets around to submitting their return the IRS responds with questions about a “duplicate return,” and may refuse to accept your genuine filing.
The real challenges begin with obtaining copies of what has been filed in your name, and undoing the damage the identity thief has done to your good name. This process can take years, and often includes a full IRS audit, generating more issues (read: a large tax bill).
Protect yourself. If you are contacted by the IRS with identity related questions, or have your return rejected as a duplicate you need to take immediate action. We invite you to contact us for a free consultation at 866-631-3470.