How to Fight Identity Theft
Fighting identity theft is an ongoing battle as identity thieves continue to create new ways of stealing personal information and using it for their gain. Tax-related identity theft occurs when someone uses a stolen Social Security Number to file a tax return and claim a fraudulent refund. The IRS is committed to reducing fraudulent refunds and has launched several new initiatives to combat this problem. The Identity Theft section of the IRS website includes information regarding how to protect yourself from identity theft, and it also includes a complete step-by-step guide for actions you should take if your identity is stolen.
In an effort to battle the problem of identity theft, the IRS is sending letters to taxpayers, who may be possible identity theft victims, asking them to verify their identity in order to complete the processing of their return. The letter is known as “Letter 5071C” and gives taxpayers two options to contact the IRS and confirm whether or not they filed the return that has been submitted. Taxpayers can use the
The Franchise Tax Board issued a press release warning taxpayers to be wary of theft ploys involving scammers attempting to mimic FTB collection agents in order to gain access to taxpayers’ personal information. This is the second warning in the last few months. Read more