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Individuals

Tax Return Identity Theft

By July 22, 2015No Comments

A survey conducted by The Tax Advisor and Journal of Accountancy revealed that sixty-three percent of tax practitioner respondents had clients who were victims of identity theft this year.  In addition, many reported significantly long telephone wait times, along with other difficulties, when dealing with the IRS to resolve the issue on behalf of their client. Unfortunately, the current IRS process for resolving each case leaves victims feeling concerned, frustrated, and as if they are being punished by the IRS for an issue that was not created by themselves.

For most individuals, the first indication that their identity was stolen with the IRS is when their tax return is rejected because one has already been filed using their social security number. The Internal Revenue Service has issued a publication with some helpful information for taxpayers who have become victims of identity theft. http://www.irs.gov/pub/irs-pdf/p5027.pdf

There are some additional forms that need to be filed that we are more than happy to assist with.

1. IRS Form 14039, Identity Theft Affidavit. Proof of your identity, like a copy of your Social Security card, driver’s license or passport must be included.

   a. The IRS now issues an Identity Protection Pin (“IP PIN”) for taxpayers who have been victims of identity theft

b. A taxpayer may request an IP PIN if:

i. They filed a federal tax return last year with an address in Florida, Georgia or the District of Columbia (as part of a pilot program), or

ii. They received a letter or CP01F Notice inviting them to get an IP PIN.

2. For California, FTB Form 3552, Identity Theft Affidavit, will also need to be completed. Proof of your identity, like a copy of your Social Security card, driver’s license or passport must be included.

As you can see, dealing with identity theft is a difficult and stressful matter which we can help you navigate. Please do not hesitate to call us if you require clarification and or assistance in this or any other matters.

For the full Journal of Accountancy survey article Click Here

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