2016 tax season identity theft

Tax scams to avoid this filing season its important that your small business insureds are wellinformed about the types of tax scams that can occur throughout the year to ensure their sensitive information remains protected. Preventing tax season identity theft peoples defender. Thats tax identity theft, a problem we hear more about each year. In recent years, identity theft has mushroomed and as the filing season starts, tax related identity theft is especially prevalent. An unprecedented publicprivate crackdown has helped slow identity theft and prevented millions of dollars in fraudulent tax refunds, the irs and tax industry professionals said thursday. Cyber security tip tax season is identity theft season, b e prepared. While that number is lower than 2016s figures, tax return fraud remains a threat. Tax season and identity theft the college investor. You get a notice from the irs that more than one tax return was filed in your name. Use a secure internet connection if you file electronically. How insurance protects against identity theft during tax. Prevent identity theft during tax season lpi senior.

In addition to the start of the season, this week is tax identity theft awareness week. Many of these cases relate to taxpayer id theft and fraud. Tax identity theft awareness ftc consumer information. Covid19 tax extension raises risk of taxrelated identity. One of the best ways to protect your private information this time of year is to secure identity theft insurance.

In this scheme, identity thieves enter stolen personal information primarily social security numbers on fraudulent tax returns that claim tax refunds. As tax season approaches, irs ramps up fight against id theft. Tax season is prime time for identity theft sapling. But con artists are most active during each years main tax filing season. To steal your identity so they can file a fake tax return claiming a fraudulent refund.

How seniors can prevent rising online scams, identity. Stolen identity refund fraud press releases department of justice. For people who may be at risk, this figure doesnt bode too well. Stolen identity refund fraud department of justice. As you work this time of year to gather documents and prepare your legitimate tax return, identity thieves, too. Take the time to commit your social security number along with your spouses and childrens, too, if applicable. Because these scams can not only lead to identity theft but also significant penalties and even criminal prosecution. We also looked at how irs helps taxpayers who are victims of id theft refund fraudwherein fraudsters pose as taxpayers and file returns. Take these steps to help know how to spot a scam and protect yourself from tax fraud. You are unable to efile your return because it has already been filed. This testimony summarizes the information contained in gaos january 2017 report, entitled 2016 filing season.

You receive a paycheck or a w4 from an employer you dont know. This year, the internal revenue service continues to take new steps and strong actions to protect taxpayers and help victims. Since the irs has extended the 2019 tax filing date until july 15, 2020, in. Identity theft an ongoing concern on the irs annual dirty. Tax identity theft also happens when someone uses your social security number to get a job or claims your child as a dependent on a tax return. Tax season is peak season for certain identity thieves. Because 143 million peoples social security numbers were exposed by equifax negligence, the. This years tax identity theft awareness week is january 2529.

As reports show, there was a staggering 400% increase in tax related phishing attacks during the 2016 filing season. Or, if you receive one you werent expecting, such as a w2 from a company for which youve never worked, someone may be using your ssn fraudulently. Brooklyn tax return preparer pleads guilty to stolen identity refund fraud scheme. Changes in irs policies in response to identity theft make tax season more confusing. Irs says 2016 crackdown helped slow identity theft, tax. After only a quarter of the way through this years tax season, the rate of identity theft increased by 400% over last year phishing and malware assaults top the list of a new group of email scams directed at consumers and tax preparers. Kansas tax return preparer sentenced to prison for aggravated identity theft and stealing government funds. Even more alarming is the fact that complaints about individuals impersonating. You can reach the irs identity protection specialized unit at 18009084490. Tax season is a time when identity theft typically peaks, and older adults are at higher risk than younger ones. Prevent senior identity theft during the 2016 tax season. How the irs is strengthening identity theft protection for. So, how do you keep your identity safe this tax season.

Identity protection tips for tax season lamplighter. The number of taxpayers claiming they were victims of identity theft dropped 50 percent in the first nine months of 2016 according to forbes magazine. The irs tax filingdate extension due to the covid19 crisis could lead to increased tax identity theft and further identity crimes for victims. Irs says 2016 crackdown helped slow identity theft, tax refund fraud. In the event you are the victim of the above identity theft scams, the federal trade commission has a website. The confusion of filing tax returns often leads taxpayers. The irs also continues to expand filters the irs uses to detect identity theft refund fraud. Identity theft is one of the fastest growing crimes nationwide, and tax refund fraud caused by identity theft is one of the biggest challenges facing the irs. How can you protect yourself from tax identity theft. Startling report of irs tax refund frauds including. With tax filing season now upon us, theres another kind of identity theft you should be watching out for. Prevent identity theft during tax season the metlife blog. Irs improved telephone service but needs to better assist identity theft victims and prevent release of fraudulent refunds. While millions of americans become victims of identity theft each year, statistics show that we may be even more vulnerable during tax season.

In 2016, one taxrelated identity theft victim said the irs told him it would take. Tax season is here, and identity theft may run rampant. Works with states, industry on identity theft refund fraud. The additional requirements focus on trusted customer features to authenticate tax preparers, taxpayers and tax. As w2s and other tax documents start arriving in the mail each january, place them in secure storage, whether its a home safe or a locked drawer in a desk or filing cabinet, until its time to use them. These precautions may make it harder for someone to steal your identity but not impossible. Consider following these 6 simple steps to help prevent identity theft during the tax season. Last year saw recordbreaking instances of tax fraud, with security issues at both the state and federal levels raising eyebrows. According to the federal trade commission, 36% of adults 50 years of age and older fall victim to identity theft every year. Sadly, just about every day needs to be designated as tax scam avoidance day. Ncua posts new online resources to help consumers in. File your tax return as early in tax season as you can.

Dont give fraudsters a hand filing a fake tax return. The irs security summit, composed of the irs, state tax agencies and industry partners including taxact, has developed new and expanded safeguards to help fight identity theft. The federal trade commission ftc says that % of seniors were victims of identity theft in 2016. Despite all of the safeguards the irs has put in place to stop cybercriminals, its still our duty as tax preparers to educate clients, and follow. Therefore, its important that taxpayers are aware of the common scams in order to protect themselves from determined cybercriminals. Identity thieves typically file fraudulent returns early in the filing season, before unsuspecting. Warning signs that youre a victim of tax refund identity theft. My 2016 state tax i never received refund so called and had to send in w2 and id and now i try to track my refund and it says wrong amount. For the 2016 tax preparation season, 59% of cpa tax practitioners said one or more of their clients were victims of tax identity theft during the year. In the meantime, to start fighting tax identity theft, remember. The irs combats taxrelated identity theft with an aggressive strategy of. Its that mostdreaded time of year again for americans everywhere. What the irs isnt telling you about identity theft usa today. As we begin another year, we will keep our eyes open and try to stay ahead of any threats that come our way.

Tax identity theft awareness week aims to educate consumers about scams. Know the signs of tax related identity theft if you dont receive a w2 or other tax document you were expecting, it may have been stolen from your mailbox. Be sure to also obtain copies of your credit reports to ensure that other fraudulent accounts have not been opened in. The federal trade commission website has some startling statistics to share about irs identity theft that gives food for thought if you tend to be careless about your personal, sensitive information. If youve never been a victim of identity theft, you may feel like it. Still, the government reported that over threequarters of a million people in 2016 were victims of tax fraud, amounting to more than. Stolen identity refund fraud sirf enforcement one of the tax divisions highest priorities is prosecuting people who use stolen identities to steal money from the united states treasury by filing fake tax returns that claim tax refunds. One way to avoid tax fraud is to stay ahead of cybercriminals and file early. The irs estimated that during the 20 filing season alone, over 5 million tax returns were filed using stolen identities, claiming. Key irs identity theft indicators continue dramatic decline in 2017.

Although many efforts have been made by governments and tax preparation services to increase security, the fact remains that tax identity theft is an issue that. Tax season heightens risk of data breaches and identity theft. Cyber security tip tax season is identity theft season. Tax season is the number one time of the year for identity theft. Make sure that you are protecting yourself by following these tips. The irs identified and confirmed 31,578 fraudulent tax returns involving identity theft as of february 29, 2016, and identified 20,224 prisoner tax returns for screening as of march 5, 2016. Tax identity fraud is a multibillion dollar industry for criminals. Tax season filing informationdont be a victim middleton, ma. For many americans, tax season is a time of confusion and dread. If youve never been a victim of identity theft, you may feel like it could never happen to you. I know none of us probably look forward to that, but. In 2014, this type of identity theft topped the list of such complaints among the incidents reported to the ftc. Tax based identity theft is bad, and its getting worse.

Heres how to protect yourself and your refund from. Tax season brings identity theft issues brown smith wallace. Since 2015, the number of taxrelated identity theft victims has fallen by. File your tax return as early in the tax season as you can. As part of the security summit effort, stronger protections for taxpayers and the nations tax system have gone into effect for the 2016 tax filing season.

Tax scams abound this tax season tips to stay incident free. Dont give it out unless theres a good reason and youre sure who youre giving it to. That percentage is down slightly from the 63% of respondents who answered the question the same way in 2015 see 2015 tax. Six ways to avoid the biggest identity theft scams this. The irs is working diligently with state tax authorities and the tax industry to address tax related identity theft and refund fraud. Cpas contend with tax id theft journal of accountancy. Tax season is tax scam, tax identity theft season dont. Tax season is an opportunity for scammers to prey on seniors. Falling victim to tax identity theft can make it difficult to get any. Dont let identity thieves steal your tax return nextadvisor. So, what should you do if you become a victim of tax related identity theft. Tax season is also tax refund identity theft season.