The “Taxing” Consequences Of Identity Theft

It’s the most wonderful time of the year, TAX SEASON! That time of the year when thoughts of new cars and tropical vacations dance through your head. The ways to spend your refund are endless and irresponsible, but you desire a reward. With your W2s and receipts you race to your tax advisor, to hear how much Uncle Sam owes you. Suddenly shock sets in as your tax advisor informs you that your tax return was already filed and your refund collected. You stand irate and demand an explanation.

Your tax advisor adjusts his bifocals to explain that tax-related identity theft occurs when someone steals your Social Security number (“SSN”), files a tax return and fraudulently collects your refund. The theft of your SSN may go unnoticed until you attempt to file your tax return, a collection action is commenced against you for a year you did not file a tax return, you receive a letter from the Internal Revenue Service (IRS) informing you of suspicious return using your SSN or the letter indicates you received wages from an employer you never worked for. But by then the thief has absconded with your refund and is enjoying your tropical vacation, leaving you wondering what to do.

What you need to do next

If your SSN is stolen and identity jeopardized, you should file a complaint with the Federal Trade Commission (“FTC”), and contact your financial institutions to close any accounts compromised by identity thieves. Additionally, immediately respond to any IRS notices, complete IRS Form 14039, Identity Theft Affidavit, and if your electronic tax return is rejected due to duplicate filing under your SSN, file your return by paper and submit it to the IRS. Also, continue to pay your taxes, because while having your identity stolen may be stressful, the consequence of the IRS are taxing!

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have questions about identity theft, call (800) 734-9900 or clubassist@amerilawyer.com for assistance. Remember, as a member of the  General Counsel Club, you receive unlimited legal, business, credit and tax advice all year long.

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