What you need to do if your tax information is stolen TechRadar

What you need to do if your tax information is stolen TechRadar

What you need to do if your tax information is stolen TechRadar Skip to main content TechRadar is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Here's why you can trust us. What you need to do if your tax information is stolen By Rob Clymo, Bryan M Wolfe published 16 June 2022 How to spot identity theft and what you need to do next (Image: © Shutterstock / song_about_summer) Tax-related identity theft is a big issue and one that has the potential to affect anyone. The fallout from such an event can be a significant issue, as your stolen personal information could be used to file a tax return (opens in new tab) and claim a fraudulent refund. Your Social Security number and other personal details could also be used for other fraudulent reasons, which might happen without you knowing about it. Of course, it's prudent to ensure that you have taken measures to get the best identity theft protection (opens in new tab) before you do anything else. Picking the right package to suit your needs and requirements will help tackle the broader issue of ID fraud, and the top identity theft protection services are a great place to start. However, this article looks more specifically at what you need to do if your tax information is stolen. It's an excellent idea to spend a little time finding out how to spot the telltale signs of identity theft, especially concerning your tax affairs. The IRS will usually inform you if it's already happened, but there are plenty of things to look out for to stay ahead of the game. It may be that you'll want to let the IRS know of any suspicious activity instead. It can work both ways.Check out the Best identity theft protection (opens in new tab)The best tax software (opens in new tab) around todayTake a look at the best accounting software (opens in new tab) Identity theft The IRS has a handy checklist of things to look out for if you suspect identity theft has taken place. It kicks things off by advising you to be wary if you get a letter from them about a tax return you didn't file. You may also find you're prevented from e-filing a tax return because your Social Security number is duplicated in the IRS system. Other issues could be that you get a tax transcript in the post that you didn't ask for, or there's a notice from the IRS that a new online account has been created in your name. You could also find that the IRS notifies you about activity in an existing online account, highlighting potentially fraudulent activity if you didn't access it. On top of that, you may get an IRS notice indicating that you owe additional tax or refund offset. Alternatively, it may flag up collections taken against you for a year that you might not have filed a tax return. Another alarm bell is if IRS records indicate that you have received wages or income from an unknown employer. Thankfully, the IRS has plenty of helpful advice on how best to take action if you are a victim of identity theft. Tax return Naturally, if you suspect you've been a victim of tax-related identity theft, you'll want to get on top of the problem as soon as possible. If you've got a fraudster going after your tax refund, it's vital to work with the IRS to ensure your genuine return gets processed swiftly. You might find that the first time you know about identity theft is when your return gets rejected if someone has already filed using your Social Security number. This can happen if you've e-filed or gone via the paper filing route. You might not get a letter from the IRS stating that it suspects fraudulent activity has occurred, which is why it's essential to remain vigilant. IRS Form To let the IRS know if you think another tax return has been filed using your Social Security number, you'll need to complete Form 14039. This allows you to indicate to the IRS that you think someone else has been using your details, which have subsequently affected your tax account. Along with giving the IRS details on what you think has happened, you'll be required to provide information about the tax year affected and the last tax return you submitted before the identity theft took place. Once you've filled in Form 14039, you'll need to mail it to the IRS and provide them with a copy of your Social Security card and driver's license. A US passport, military ID, or government-issued identification card will also be suitable. Be sure to include any correspondence you've received from the IRS if it has already been written to you about a potential fraudulent return. Investigation time Once it has the relevant information, the IRS will investigate the issue and clear the fraudulent return from your taxpayer account. In addition, the IRS will often add a special marker alongside the account, which subsequently generates an Identity Protection PIN specifically for the taxpayer that has been affected by the fraudulent activity. The benefit of this action is that a return cannot be filed without the accompanying IP PIN, therefore adding another level of protection. And protection is what you need, whatever your level of online activity. Remember that the best identity theft protection (opens in new tab) packages are excellent at preventing criminal activity and alerting you to it. However, knowing what you'll need to do if your tax filing activities are hijacked is vital. Victim assistance The IRS has a handy website page outlining Identity Theft victim assistance. It outlines how the IRS Taxpayer Protection Program can often identify a suspicious tax return, which means that the revenue service will contact you first. Remember that if you have grounds to be suspicious or, for example, your e-filed return is rejected because of a Social Security number duplication, then you'll need to contact the IRS yourself.Check out the Best identity theft protection (opens in new tab)Today's best LifeLock Identity Theft deals1st year (opens in new tab)LifeLock Advantage (opens in new tab)$17.99/mth (opens in new tab)View Deal (opens in new tab)at LifeLock (opens in new tab)1st year (opens in new tab)LifeLock Ultimate Plus (opens in new tab)$26.99/mth (opens in new tab)View Deal (opens in new tab)at LifeLock (opens in new tab) Rob ClymoRob Clymo has been a tech journalist for more years than he can actually remember, having started out in the wacky world of print magazines before discovering the power of the internet. Since he's been all-digital he has run the Innovation channel during a few years at Microsoft as well as turning out regular news, reviews, features and other content for the likes of TechRadar, TechRadar Pro, Tom's Guide, Fit&Well, Gizmodo, Shortlist, Automotive Interiors World, Automotive Testing Technology International, Future of Transportation and Electric & Hybrid Vehicle Technology International. In the rare moments he's not working he's usually out and about on one of numerous e-bikes in his collection. See more how-to articles Are you a pro? Subscribe to our newsletter Sign up to theTechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Thank you for signing up to TechRadar. You will receive a verification email shortly. There was a problem. Please refresh the page and try again. 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