Identity Theft Impacting Your Taxes

Identity Theft Impacting Your Taxes

Identity Theft – Impacting Your Taxes?
If your identity is​ stolen,​ your finances can quickly become a​ nightmare .​
a​ less obvious problem is​ the​ effect identity theft can have on​ your taxes.
Identity Theft
Generally,​ thieves steal your personal data for the​ purpose of​ running up credit card charges or​ opening and abusing new accounts .​
a​ developing trend in​ the​ identity theft field concerns schemes impacting your taxes.
Selling Social Security Numbers
Identity thieves have created a​ new line of​ business – selling your social security number .​
Who would want to​ buy it? the​ list is​ surprising long,​ but undocumented workers,​ individuals with bad credit and people trying to​ obtain a​ new identity lead the​ list .​
This can create a​ huge problem for you​ since any income paid to​ those individuals is​ reported to​ the​ IRS as​ being paid to​ you​ .​
This results in​ the​ IRS having inflated income numbers and,​ often,​ audits when you​ under report your income.
With the​ creation of​ the​ Real ID Act,​ better known as​ the​ National ID Card,​ things will only get worse .​
Under the​ Act,​ all workers will be required to​ submit social security numbers to​ obtain jobs .​
With our leaky borders,​ there will be a​ high demand for your social security number.
False Tax Filings
It doesn’t take much to​ file a​ tax return .​
What’s to​ stop an​ identity thief from filing one under your name to​ generate a​ refund? Nothing .​
To generate the​ maximum refund,​ you​ can be all kinds of​ frivolous deductions will be claimed .​
After all,​ it​ will be you​ that has to​ attend the​ audit.
What Can I​ Do?
If you​ receive a​ notice from the​ IRS that leads you​ to​ believe someone may have used your Social Security Number fraudulently,​ you​ should notify the​ IRS immediately .​
Indicators can be found in​ notices from the​ IRS that state:
1 .​
More than one tax return for you​ was filed,​ or
2 .​
IRS records indicate you​ received wages from an​ employer unknown to​ you.
Don’t hesitate or​ be nervous about contacting the​ IRS .​
The agency knows this is​ a​ growing problem and not an​ opportunity to​ pound on​ taxpayers.

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