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A Guide on What to Do in Case of IRS Identity Theft

A Guide on What to Do in Case of IRS Identity Theft

Safeguarding Your Finances

In the age of digital transactions and online financial activities, the threat of identity theft looms larger than ever. For taxpayers, falling victim to IRS identity theft can be a daunting experience. This comprehensive guide aims to shed light on what to do if you suspect or discover that you’ve become a victim of IRS identity theft. From recognizing the signs to taking corrective action, we’ll navigate through the steps that can help safeguard your financial well-being.

Signs of IRS Identity Theft

Identifying IRS identity theft early is crucial for minimizing potential damage. Look out for these signs that may indicate your personal information has been compromised:

  • Unexpected Tax Refund Issues: If you experience delays or issues with your tax refund, it could be a sign that someone else has filed a fraudulent return using your identity.
  • Unexplained Tax Transcript Requests: If you receive notices or transcripts from the IRS that you didn’t request, it’s a red flag that someone might be trying to access your tax information.
  • IRS Notifications for Unusual Activity: The IRS may send you notifications about suspicious activity related to your tax account. Take these alerts seriously and investigate promptly.

Immediate Actions to Take

If you suspect or confirm that you’re a victim of IRS identity theft, swift action is essential. Follow these immediate steps to protect yourself and mitigate potential damage:

1. Contact the IRS:

2. File a Police Report:

  • Visit your local police station to file a report documenting the identity theft.
  • Obtain a copy of the police report, as it may be required when working with creditors and the IRS.

3. Place a Fraud Alert on Your Credit Reports:

  • Contact one of the three major credit bureaus (Equifax, Experian, or TransUnion) to place a fraud alert on your credit reports.
  • This alert notifies creditors and lenders to take extra precautions before approving credit in your name.

4. Review Your Credit Reports:

  • Obtain free credit reports from each bureau and thoroughly review them for any unauthorized accounts or suspicious activity.
  • Dispute any inaccuracies or fraudulent entries with the credit bureau.

Resolving IRS Identity Theft

Resolving IRS identity theft involves cooperation with the IRS, patience, and adherence to their procedures. Here’s a step-by-step guide on how to navigate the resolution process:

1. Complete IRS Identity Theft Affidavit (Form 14039)

Submit Form 14039 to the IRS, affirming that you are a victim of identity theft.

2. Mail the Affidavit

Follow the IRS instructions for mailing the completed affidavit, along with any required documentation, to the designated address.

3. Response from the IRS

The IRS will acknowledge receipt of your affidavit and initiate an investigation into the identity theft.

4. Tax Return Filing

Continue to file your tax returns during the resolution process, either electronically or by mail.

5. Follow IRS Guidance

Cooperate fully with any requests or instructions from the IRS during their investigation.

Preventive Measures

After resolving IRS identity theft, taking preventive measures is crucial to reduce the risk of future incidents:

  • Secure Your Personal Information: Safeguard personal information, including Social Security numbers, financial records, and tax documents.
  • Use Strong Passwords: Employ complex passwords for online accounts, and consider using multi-factor authentication when available.
  • Monitor Your Accounts Regularly: Keep a close eye on your financial accounts and credit reports for any suspicious activity.
  • Stay Informed: Stay informed about common scams and phishing tactics used by identity thieves.

Conclusion

IRS identity theft can be a challenging situation, but by recognizing the signs, taking immediate action, and following the proper procedures, you can protect yourself and navigate the resolution process successfully. Additionally, adopting preventive measures will help minimize the risk of future identity theft incidents. Remember, staying vigilant and informed is your best defense against these threats.

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FAQs

 The simple answer is no. A business and a person are completely separate, thus, any personal tax debts or liabilities should not affect your business.

Tax debt can be an exhausting and complicated thing to deal with on your own. Communicating with the IRS and professionally handling your tax liabilities are just two of the services companies like Priority Tax Relief can offer.

No. The IRS’s Innocent Spouse Relief protects you from paying these additional taxes. However, this does not relieve you from household employment taxes, business taxes, individual joint responsibility payments etc. Priority Tax Relief helps you learn more about innocent spouse relief.

The most popular option to date would be an Offer In Compromise (OIC). At Priority Tax Relief, we help tax relief help become more accessible to taxpayers in need and help them understand how they can qualify for these options.

IRS tax liens are legal claims on your property when you do not settle your tax debts. The IRS usually sends out a notice when no payment has been made after a liability assessment. Find out more about tax liens with Priority Tax Relief.

Yes. Not only can the IRS put a claim on all your current property, tax liens can also affect any property or intangible or tangible assets that you obtain in the future. At Priority Tax Relief, we help you understand federal tax liens and how to communicate with the IRS.

 

Tax levies are the actual seizure of your property and are different from legal claims or tax liens. Settle your taxes before the IRS sends out a notice. Priority Tax Relief helps you understand tax levies and how you can avoid them.

Yes. Not only can they seize physical property but they can also legally take hold of the money in your bank account and other wages. To avoid this from happening, contact Priority Tax Relief now.

Your debt will, unfortunately, continue to grow and you will possibly lose a great number of your assets. It is definitely a scenario we do not wish to see happen to anyone, that’s why Priority Tax Relief makes sure that our help becomes within reach.

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