For many of us, and our clients, identity theft, unfortunately, is an all-too-familiar topic.
Victims of identity theft and, in particular, tax-related identity theft and tax scams continue to increase at alarming rates. The Internal Revenue Service (IRS) estimates that it erroneously paid more than $5 billion in fraudulent tax refunds to identity thieves in 2013. Tax-related identity theft remains one of the biggest challenges facing the IRS … and taxpayers. As the 2014 tax filing season is in full swing and tax-return filing and refund frauds are increasing, a heightened sense of awareness is vital. In fact, the IRS recently issued a list of the “Dirty Dozen Tax Scams,” many of which are occurring as this article goes to press. Lost wallets, stolen mail and data breaches put everyone at risk. Additionally, if you or your clients receive notice from the IRS that they may be a victim of identity theft or a recently filed tax return is unable to be processed, tax refunds may be in jeopardy.
