As mentioned before, identity theft issues concerning the IRS and taxpayers have grown significantly in the last few years, adversely affecting the financial lives of everyday people, often people we know. Identity Theft Case in point: Robert “Sully” Sullivan, Big Biz Show radio and TV personality and friend visited the Tax Resolution Services offices to reveal that he was recently a victim of identity theft and to inquire about what to do next. Below the video is advice on how he can protect himself, his credit and get some tax relief!
Unfortunately, Sully’s story is all too common: contact the IRS to ask a tax related question about the return you are preparing only to discover that not only has your tax return been filed using your social security number, a tax refund had been generated and sent to an unknown address in a different state!
For Sully, here is what the TaxTeam and I suggested he do immediately to unfurl his tax problem:
- Contact the IRS, fill out Form 14098, file 2011 taxes and inquire about new social security number
- Contact the San Diego Police Department to file a report
- Contact consumer affairs to file a report
- Contact the State Attorney General’s office and the City of SD attorney to file a report
- File a complaint with the consumer financial protection bureau
- Contact all three credit agencies to see if other types of credit were used in his name.
The Tax Team Solution: Identity Theft Tips The following video (and information below) provides helpful and important Tax Team solutions for Sully and other taxpayers facing IRS identity theft issues:
Identity Theft Tip #1 – Fraudulent returns are typically filed before Feb 15 – many taxpayers do not have their W-2’s until then so this is often a giveaway.
Identity Theft Tip #2 – If Sully receives a notice of liability from the IRS, to contact Collections immediately to let them know there is an identity theft tax issue and to put a Collection Hold on his record. This step is to avoid the risk of an IRS levy.
Identity Theft Tip #3: – If anyone believes they may have had their identity stolen, they are encouraged to file Form 14098 paperwork with the IRS to protect your account from identity theft issues.
The good news for Sully is……he may receive some IRS relief because he had a net operating loss carry forward for stocks that he would have used on his 2011 return. This fact will be to his advantage when he goes to untangle this huge mess.
Identity Theft Tax Issues Are Here to Stay (for now)
While the IRS has attempted to deal with the growing IRS identity theft issue by creating the IRS Identity Protection Specialized Unit, it’s pretty clear that identity thieves are managing to stay one step ahead.
The Justice Department’s Tax Division, local U.S. Attorneys’ offices and local law enforcement are all beginning to working together to tackle identity theft. Sadly though, taxpayers pay the most in the long run. This is because the IRS has pledged to take more time in assessing tax refunds to the “real” person filing the return therefore slowing down the refund process; refunds that many people rely on every year to make ends meet.
If you think you may be a victim of identity theft or a tax scam, get some tax help immediately by contacting the IRS and your tax professional immediately. Remember: the IRS holds you responsible for information provided to them and will come after you for payment, no matter what. It’s in your best interest to make sure your tax account is clean.
More Tax Help, IRS News and Tax Relief Tips:
- Tax Man Explains IRS on Big Biz Show
- Identity Fraud Victim Gets Expert Advice from Tax Team
- IRS Tax Levy-Avoid Them At All Costs
- Tax Relief Weekly News Round Up
- How to Hire the Right Tax Resolution Firm