Tax-related identity theft occurs when someone steals your Social Security number and uses it to procure a fraudulent tax refund. If you are a victim of tax-related identity theft, your tax refund will almost certainly be delayed.
Worse yet, the criminal who filed a fake return using your personal information still has it. You remain a potential target of other crimes.
Be aware of the warning signs of tax-related identity theft. Learn how to help protect yourself — and know what to do if you become a victim.
Five warning signs
It almost always comes as a surprise to find out that you may have become a victim of tax-related identity theft.
Here are five red flags:
- Your e-filed tax form is rejected.
- The Internal Revenue Service or your tax preparer tells you that more than one tax return has been filed using your Social Security number.
- The IRS mails you a letter saying a suspicious return has been filed using your Social Security number.
- Your IRS record shows you were paid by an employer you don’t recognize. Why? This indicates that someone may have used your Social Security number to become employed and that the employer has reported the income to the IRS.
- The IRS mails you a notice that you owe additional tax for a year that you didn’t file a return.
What to do
The Federal Trade Commission recommends taking these steps:
- Go to identitytheft.gov to file a complaint with the FTC.
- Contact one of the three major national credit bureaus — Equifax, Experian or TransUnion — to place a fraud alert on your credit records. The bureau you contact will notify the other two.
- Contact your bank and other financial companies. Close any accounts opened without your permission. Also close accounts that show any suspicious activity.
In addition, the IRS recommends these steps:
- Respond to any IRS notices and call the number that’s included.
- Complete IRS Form 14039, the Identity Theft Affidavit, if your e-file return is rejected due to a duplicate filing under your Social Security number or if the IRS instructs you to do so. Here’s how: Use the fillable form at IRS.gov. Print and attach the form to your paper return. Mail the forms according to IRS instructions.
- Go ahead and pay your taxes with your mailed tax return.
Tip: No one wants to have a tax refund delayed, but tax-related identity theft will likely slow down the process. If you’ve done everything right and contacted the IRS but still don’t have a resolution, call the IRS special assistance number: 800.908.4490.
There are a variety of identity theft services on the market to help you combat this growing problem. MTAB offers a solution through LifeLock, which has been providing proactive identity theft protection services since 2005. For details about the program and to learn about the MTA member discount, please visit mtabenefits.com/benefits/financial/identity-theft-protection.
MTAB Annual Meeting
The MTA Benefits Annual Meeting was held on Nov. 20. Seated from left to right are Director Jacquelyn Lawrence, MTA Executive Director-Treasurer Lisa Gallatin and Director Jacqueline Gorrie. Standing from left to right are Directors Robert V. Travers Jr. and Donna Grady, MTA Benefits President Maryann C. Robinson and Director Ryan Hoyt. Not pictured are MTA President Merrie Najimy, Vice President Max Page and Director Gerard Ruane.
