Identity theft issues impact millions of taxpayers each year, resulting in considerable delays and taxpayer burden. In the 2023 Annual Report to Congress, National Taxpayer Advocate Erin M. Collins discussed how each year, the IRS flags millions of returns for potential fraud. In 2022, the IRS suspended processing of 4.8 million tax returns pending identity verification. That’s 4.8 million taxpayers who had to do extra steps before their tax return could be processed. However, there are a few things that taxpayers can do to help ensure that your identity can be authenticated as quickly as possible.
· Tax-related identity theft has been a problem since about 2004-05, and it “only got worse” since then, said Nina Olson, executive director and founder of the Center for Taxpayer Rights.
It went from being a one-off [thief] ripping off someone’s Social Security number to a whole scheme and organized crime,” Olson said.
`The Internal Revenue Service warned of an ongoing IRS-impersonation scam that appears to primarily target educational institutions, including students and staff who have ".edu" email addresses.
` With your child’s information, someone could also file a fraudulent return using your child as a dependent, potentially receiving credits and deductions from the IRS they aren’t entitled to. Subsequently, your tax return and your refund could be held up with the IRS for months while they sort it out.
· If you are a current client and receive a letter from the IRS or your State, please contact the office so we can let you know if you need to do as the letter says.
~ to freeze your credit go to https://www.usa.gov/credit-freeze .
~Click on the link in the above section to get information on the IP PIN, for extra protection for filing your taxes.