Identity theft is becoming more common, and one of the places it shows up is during tax season. Tax identity theft happens when someone uses your Social Security number to file a tax return and claim your refund. Many people only discover the problem when they try to file their taxes and the IRS says a return has already been submitted.
Understanding how tax identity theft works can help you protect yourself and respond quickly if it happens.
What Is Tax Identity Theft?
Tax identity theft happens when a criminal steals your personal information and uses it to file a fake tax return. The goal is usually to claim a tax refund before the real taxpayer files their return.
The thief may use your Social Security number, name, and address to submit a return early in the tax season. By the time you try to file your taxes, the IRS system may reject your return because it shows that one was already filed.
This type of fraud has become more common because criminals can sometimes buy stolen personal information online or get it through data breaches.
Signs Someone May Have Filed Taxes in Your Name
There are a few warning signs that may show tax identity theft has happened.
One of the most common signs is when the IRS rejects your tax return and says one has already been filed using your Social Security number. Another sign is receiving an IRS letter about a tax return you never filed.
Some people also receive notices about income from an employer they never worked for. This can happen if someone used their Social Security number to get a job.
If any of these things happen, it is important to take action quickly.
What to Do If You Become a Victim
If you believe someone filed a tax return using your information, the first step is to report the problem to the IRS. The IRS has a special process for identity theft cases.
You may need to fill out IRS Form 14039, which is called an Identity Theft Affidavit. This tells the IRS that someone may have used your information fraudulently.
The IRS will investigate the case and work to correct your account. In many cases, you can still file your real tax return, but the process may take longer while the IRS reviews the situation.
It is also a good idea to check your credit report and consider placing a fraud alert with the credit bureaus.
How to Protect Yourself from Tax Identity Theft
There are several steps you can take to reduce the risk of tax identity theft.
Filing your taxes early can help because it makes it harder for someone else to file a fake return first. You should also protect your Social Security number and avoid sharing personal information unless it is necessary.
Be cautious with emails, phone calls, or text messages claiming to be from the IRS. The IRS does not usually contact taxpayers through these methods, asking for personal information.
Using secure tax preparation services can also help protect your personal data.
How Local Tax Can Help
If you are worried about tax identity theft or believe someone has already used your information, getting professional help can make the process much easier.
Local Tax, located at 9429 Somerset Blvd, Bellflower, CA 90706, helps individuals and small business owners prepare and file their taxes safely. Our team can help you file your return correctly, respond to IRS letters, and guide you through the steps needed if identity theft has occurred.
Working with a trusted tax professional can reduce the risk of mistakes and help protect your personal information during tax season.
If you have questions or need help with your taxes, you can contact Local Tax at (562) 925-2203 to speak with a tax professional who can help you move forward with confidence.
Local Tax – 9429 Somerset Blvd, Bellflower, CA 90706
