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The Holland Law Firm, P.C.

Criminal Records Identity Theft – What Does it Entail?

How Can Tax Identity Theft Occur?

Identity theft is terrible; there’s no way around it. Few modern crimes are as prevalent, invasive, unsettling, and disruptive as identity theft. Perhaps the most troubling is that scammers can steal your identity in several ways. As we’ve covered various forms of identity theft in this blog, there’s an additional form that you should make yourself familiar with, tax identity theft. 

how can tax identity theft occur

How does tax identity theft occur? Read on to learn more. 

What Is Tax Identity Theft?

Millions of Americans receive a tax return after filing their taxes for the previous fiscal year. Having taxes taken out of your income is part of being a contributing citizen of American society. For many families, the IRS determines their income level qualifies them for a tax return. Unfortunately, scammers can take advantage of this annual transaction. 

According to the Federal Trade Commission, tax identity theft occurs when “someone uses your Social Security number to steal your tax refund;” this can create big problems people attempt to file their returns. 

If you attempt to e-file your own tax return, you may be prevented from doing so because of a “duplicate social security number;” this means someone else has already filed a tax return using your Social Security number, and it’s one of the telltale signs that you’re a victim of tax identity theft.     

How Common Is Tax Identity Theft?

In 2014 the Federal Trade Commission reported over 109,063 tax-related identity theft complaints. In the first three quarters of 2020, the Consumer Sentinel Network counted 92,620 reports of employment or tax-related fraud. Despite the raw numbers, tax-related fraud isn’t as common as credit card, loan, lease, or benefits fraud. Of course, that’s of little solace to you if you cannot receive your tax return because scammers already claimed it illegally. So, what can you do? 

What Can You Do About Tax Identity Theft?

The best way to avoid tax-related fraud is to prevent it in the first place. Keep your sensitive data as secure as possible; use two-factor authentication and strong passwords to secure your various accounts whenever possible. Be aware of phishing scams. Don’t ever give out your sensitive personal information like passwords or Social Security numbers. You can always double-check to make sure the source that’s asking for your information is legitimate.

If you cannot file your tax return and you suspect identity fraud, call an experienced identity theft lawyer

At the Holland Law Firm for Consumer Rights, we have dealt with identity theft/fraud cases of all types, and we’re here to help you navigate your way out of all the hardship it can cause.