Identity Theft Feed

Is there anyone anywhere who hasn't been a potential identity theft victim? Probably not. Even if the crooks haven't stolen your identity — yet — there's still the possibility if some holder of any of your personal information has been hacked. And that happens every day. The biggies get the most attention, like last year when cyber criminals got hold of Equifax credit bureau data, putting almost 146 million identities at risk. And no one is safe. Just last week, the federal government again fell victim to hackers. The State Department, like the Office of Personnel Management and Internal Revenue... Read more →


The tax collection efforts of four private debt collectors are paying off, bringing in $56.6 million in previously uncollected tax revenue in the first 14 months they've been on the job. However, it cost the tax bill collectors $55.3 million to do that job, netting Uncle Sam only $1.3 million. That's the word from an Internal Revenue Service report on the most-recent iteration of the private tax debt collection program. "Contrary to critics' claims and despite its slow-roll out, the IRS private debt collection program is already demonstrating that it can more than pay for itself with revenues returned to... Read more →


Classes, from Kindergarten to high school to college, are or about to be in session across much of the United States. That means parents can breathe a sigh of relief now that schools and teachers will once again add structure to their children's lives. But the beginning of the school year also prompts a new parental concern: their youngsters' privacy. No age limit for ID theft: Identity thieves don't set age limits on the people whose lives they try to steal. When a young person's identity is stolen, it sometimes takes longer to discover since most kids aren't involved in... Read more →


Taxpayer security remains a major concern across the United States. The Internal Revenue Service continues to use carrots — such as sharing security tips from tax pros who've been victimized — and sticks — specific data retention rules that practitioners must follow — to help protect tax pros and their clients. But the IRS is not alone in taking steps to protect taxpayer data. All states now taxpayer security breach notifications laws. And Virginia recently expanded its requirements, now mandating that tax professionals report any taxpayer data breach within a “reasonable amount of time." Enhancement of existing law: This new... Read more →


If you're superstitious or suffer from paraskevidekatriaphobia, today is not a good day. In case you haven't checked your calendar, it's Friday the 13th. Even scarier is the reality that any day can be unlucky if you happen to fall for a tax scam. It's true that most tax crooks use scams to steal your identity and then file fake returns to get fraudulent refunds in your name. It's also true, though, that these scammers work year-round. That's why Friday the 13th is a good day to look at 13 scary tax scams that have appeared so far this year.... Read more →


They're baaaack! Actually, they never left. They, of course, are tax scammers, who the Internal Revenue Service says have tweaked an old scheme using a form used by international taxpayers and non-resident aliens in their latest effort to steal taxpayer identities and cash. As is the case in many tax scams, the form used in this latest identity theft iteration, the W-8BEN, is real. That's an excerpt of the real IRS document, which is titled Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, below. You can click on it to see the full form at IRS.gov.... Read more →


You're parents! Congratulations! Now that you've welcomed your new baby with a special name, be sure to get him or her a Social Security card before you leave the hospital. It will help in completing many of life's tasks, including filing taxes. Click image to watch the Social Security Administration's top baby names of 2017 video at YouTube. How did your folks come up with your name? Were you named after a relative? A place? A friend? A favorite movie star? By a random dart that landed on a sheet of potential handles? My grandmother named me. Well, she at... Read more →


Big wave surfing fall by jihx via Giphy.com The Internal Revenue Service warns that there's a growing wave of identity theft attempts against employers. This National Small Business Week 2018, the tax agency offers advice on how to keep your company afloat in the fight against these crimes. Identity thieves have long made use of stolen Employer Identification Numbers (EINs) to create fake Forms W-2 that they would file with fraudulent individual tax returns. Fraudsters also used EINs to open new lines of credit or obtain credit cards. Now they are using company names and EINs to file fraudulent returns.... Read more →


High tax season ended on April 18. High tax scam season never ends. The Internal Revenue Service today warned of a twist on an old phone scam. Criminals now are using telephone numbers that mimic IRS Taxpayer Assistance Centers (TACs) to trick taxpayers into paying non-existent tax bills. It's not the first time this has happened. Back in 2015, the IRS warned of a telephone tax scam that employed spoofing, which is, in the criminal vernacular, the faking of a phone number that shows up on Caller ID. Tax identity thieves also have used smishing, the text messaging cousin of... Read more →


Identity theft is bad enough, but when it's connected to your tax data, things can be particularly scary. Not only does a crook have personal information about you, but he or she can steal the tax refund you've been counting on. In some situations where your data has been hacked, you'll want to file a Form 14039, Identity Theft Affidavit, to let the inform the Internal Revenue Service that you think you may be a victim of tax-related identity theft. Now you finally can file that form online. IRS, FTC take ID theft fight further online: The IRS now will... Read more →


Rep. Lynn Jenkins (R-Kansas) and fellow Ways and Means member Rep. John Lewis (D-Georgia) have offered a bill to revamp the IRS. Remember the kinder, gentler Internal Revenue Service? That was the goal of the IRS Restructuring and Reform Act of 1998, which sought to ease up on the tax agency's aggressive collection actions back then. Now two Ways and Means Committee members are looking to remake the IRS into a modern, more efficient agency that provides taxpayers a better experience. I'm pretty sure that modernizing and refining processes for better efficiency can eventually be accomplished. As for the improved... Read more →


When we pay a tax pro for help, we trust that person. Sometimes we shouldn't. Most of use tax professionals to help get through tax season. Thankfully, most paid tax preparers are honest. They want to help their clients meet their tax responsibilities by legally paying the least amount of tax possible under the Internal Revenue Code. But most is not all. Some tax preparers run fly-by-night operations where they simply look to make a quick buck off of honest individuals seeking tax assistance. These pros, and I use the description advisedly, often get paid based on a percentage of... Read more →


There are so many tax scams out there that it takes more than one post to cover them. Three posts, to be precise. This is Part 3 of the Internal Revenue Service's 2018 list of the Dirty Dozen Tax Scams. Your promised tax savings can be quickly washed away if you put your money into an abusive offshore tax shelter. This is it, a look at the final group of scams that crooks are using again this tax year to try to take our money. The final four schemes in this post, numbers 9 through 12, are like those in... Read more →


There are so many tax scams out there that it takes more than one post. Three, to be precise. This is Part 2 of the Internal Revenue Service's 2018 list of the Dirty Dozen Tax Scams. The four schemes in this post, numbers 5 through 8, are like those in the initial 2018 Dirty Dozen tax scams of 2018. They also are repeat (dis)honorees. That's because once crooks find something that works, they keep using it. And sadly, there are enough new victims out there every year to fall for it. Unless potential targets are warned. To do that and... Read more →


Those fake emails looking to steal your tax and personal data top the annual IRS scam list, but 11 other crooked tricks also made it, including fake IRS agents, sham charities and frivolous tax arguments (which are the only time anyone associates taxes with frivolity!). Highlights of each of the Dirty Dozen scams will be added as the IRS releases them, one a day over 12 business days, so keep checking back. Phishing once again makes the Internal Revenue Service's annual list of Dirty Dozen Tax Scams. When it comes to tax scams, the late and loquacious MLB Hall-of-Famer Yogi... Read more →


You open the package expecting, well you don't know what, but probably not 500 cockroaches. That, however, is what happened to a mail thief. Crooks will steal just about anything. And criminals who focus on U.S. Post Office boxes tend to increase their activity around this time every year. The reason? Tax refunds. Tax-related mail theft: Every February, people are either getting refund checks from the U.S. Treasury or they're receiving tax documents they can use to file their annual federal and state returns. Either option is a crook's dream. The checks can be cashed. The tax statements' info can... Read more →


Your tax refund showed up in your bank account! Party time, right? Wrong. It's possible that the money isn't really connected to your filing. It could be part of a new tax scam that's appeared this filing season. And crooks are using even more chicanery to get the money that's in your account, from posing (once again) as Internal Revenue Service agents to pretending to be debt collectors (you knew this would eventually happen). But before this latest effort to steal your tax refund got to this point, it started with stealing your tax identity. Here's the tax tale in... Read more →


Dealing with taxes is tough enough, but when folks get the wrong information, things can go really bad really fast. That happens every filing season. Someone's uncle who works down the hall from a tax attorney says this. A neighbor's accountant brother says that. And, of course, there's the internet, probably the greatest single source of, to borrow a phrase, fake tax news. The 2018 filing season is in full swing; it officially opened on Jan. 29, with Free File taking submissions since Jan. 12. Most of the folks who've already filed did so because they're expecting refunds. With those... Read more →


With the official start of the 2018 tax filing season just more than a week away, folks have been collecting important tax statements they'll need to file their returns. Identity thieves, unfortunately, are among those looking for those documents, particularly W-2 forms that most filers use to report their wage income. That's why the Internal Revenue Service is urging everyone to be on guard against the return of the Form W-2 phishing scam that last year made victims of hundreds of organizations and thousands of employees. Costly employment-related tax scam: The W-2 scam has emerged as one of the most... Read more →


Some folks are taking seriously the traditional tax advice to start annual tax filing tasks early. Unfortunately, those folks are crooks. The Internal Revenue Service and its Security Summit partners in state tax agencies and the tax industry have announced that they're seeing early signs that cyber criminals already are working to infiltrate the tax process. Tax practitioners are the prime targets as the 2018 filing season's opening on Jan. 29 nears. Fraudsters are sending a new round of emails in which they pose as potential clients or even the IRS to trick tax professionals into disclosing sensitive information, according... Read more →