Small Business Taxes & Management

Special Report

IRS Publication 4535--Identity Theft Prevention and Victim Assistance

We're reproducing IRS Publication 4535, Identity Theft Prevention and Victim Assistance, almost in its entirety. It's not long, but it has more essential information about identity theft than many articles we've seen.

While the Federal Trade Commission, the lead agency on identity theft, reported that the IRS has a low number of identity theft crimes, we take this issue very seriously.

What is identity theft?

Identity theft occurs when someone uses your personal information such as your name, Social Security Number or other identifying information, without your permission, to commit fraud or other crimes.

Identity theft is a serious crime. People whose identities have been stolen can spend months or years, and their hard earned money, cleaning up the mess thieves have made of their good name and credit record. In the meantime, victims may lose job opportunities, be refused loans, education, housing or cars, or even get arrested for crimes they didn't commit.

How can you minimize becoming a victim?

Don't carry your SSN.
Don't give a business your SSN just because they ask - only when absolutely necessary.
Protect your financial information.
Check your credit report every 12 months.
Secure personal information in your home.
Don't give personal information over the phone, through the mail or on the internet unless you have initiated the contact or you are sure you know who you are dealing with. (Remember the IRS does not initiate contact with taxpayers via e-mails, and the IRS does not request detailed personal information through e-mail.)
Protect your personal computers by using firewalls, anti-spam/virus software, update security patches, and change passwords for internet accounts.

What if you are a victim of identity theft?

Report incidents of identity theft to the FTC at www.consumer.gov/idtheft or the FTC Identity Theft hotline at 877.438.4338 or TTY 866.653.4261.
File a report with the local police.
Contact the fraud departments of the three major credit bureaus:
Equifax--www.equifax.com
Experian--www.esperian.com
TransUnion--www.transunion.com
Close any accounts that have been tampered with or opened fraudulently.

How could identity theft impact your tax records?

Individuals may use your SSN to get a job. That person's employer would report the W-2 wages earned using your SSN to IRS. This may give the appearance that you did not report all of your income on your return.
When you subsequently file your tax return the IRS will believe you already filed and received a refund, and the return you actually submitted is a second copy or duplicate.
Be alert to possible identity theft if you receive an IRS notice or letter that states that:
More than one tax return for you was filed, or
IRS records indicate you received wages from an employer unknown to you.

How can you protect your tax records?

If your tax records are not currently affected by identity theft, but you believe you may be at risk due to a lost/stolen purse or wallet, questionable credit card activity or credit report, etc contact the IRS Identity Theft Hotline at 800-908-4490

What should you do if your tax records are affected by identity theft?

If you receive a notice from IRS, respond immediately. If you believe someone may have used your SSN fraudulently, please notify IRS immediately by responding to the name and number printed on the notice or letter.

What if you receive an e-mail claiming to be from the IRS?

Remember, the IRS does not initiate contact with taxpayers via e-mail, and the IRS does not request detailed personal information through e-mail.
Confirm the contact you have received is from the IRS by calling 800.829.1040.
Please forward the bogus e-mail claiming to be from the IRS to phishing@irs.gov. Go to IRS.gov (keyword phishing) to get instructions on how to forward the e-mail message.
Do not open attachments or click on the links found within the bogus e-mail.

For additional information, visit:

IRS.gov (keyword identity theft)
IRS.gov (keyword phishing)

Copyright 2008 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The information is not necessarily a complete summary of all materials on the subject. Copyright is not claimed on material from U.S. Government sources.--ISSN 1089-1536

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--Last Update 10/21/08