IRS Warns Taxpayers on Identity Theft

The IRS recently released its list of the top 12 tax scams for 2012.  At the top of the list is Identity Theft.  The IRS reports that identify theft cases are a growing concern and are among the most difficult cases that they handle.  In an effort to combat identity theft, the IRS has initiated a comprehensive strategy focused on preventing, detecting and resolving identity theft cases as early as possible.

A typical identity theft case involves thieves attempting to use a legitimate taxpayer’s identity and personal information to file a tax return and claim a fraudulent refund.  Usually, the first time a taxpayer learns of the issue is when they receive a notice from the IRS that more than one return has been filed under their name.

Anyone who believes that they have been a victim of identity theft with respect to their tax information should immediately contact the IRS Identity Protection Specialized Unit.  The IRS has set up a special page on their website specifically dealing with this issue.  The IRS website also includes a listing of Top tips  every taxpayer should know about identity theft.

IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the Internal Revenue Service, we inform you that any U.S. tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication.