Human Resource & Payroll Services And Solutions - Houston, Dallas, Austin - Texas www.hrp.net. Here are the details of the tax identity theft crackdown, as well as a list of "high-risk" areas identified by the IRS and what you can do to help protect yourself.

1. Toll Free: 877.880.4477
Phone: 281.880.6525
IRS Cracks Down on Tax ID Theft:
Could You Be a Victim?
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2. » As the 2013 tax filing season opened, the IRS announced a national
crackdown on identity theft schemes aimed at stealing taxpayers'
refunds.
» The tax agency announced there were 734 enforcement actions in
January of this year, including indictments, search warrants, complaints
and arrests. This follows 2,400 enforcement actions against identity
thieves in fiscal 2012.
» The crime has trapped scores of innocent taxpayers. Here is a description
of how tax identity theft works, along with eight steps you can take to
help protect yourself from the devastating results..
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3. A Typical Tax ID Crime
» An identity thief generally uses a legitimate taxpayer's identity to
fraudulently file a tax return and claim a refund. The identity thief uses a
stolen Social Security number and other identifying information to file a
forged tax return and attempt to get a fraudulent refund early in the filing
season.
» In these schemes, there may be another victim. The Employer
Identification Number (EIN) of a real organization could be fraudulently
used to report fake earnings and withholding.
» The IRS may issue a refund to the
thief before it realizes that there is
no matching, legitimate paperwork
from the employer.
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4. » The real taxpayer may be unaware that tax identity theft has occurred
until he or she files a return later in the filing season. The individual may
discover it after receiving a letter from the IRS stating that:
 More than one tax return was filed.
 There is a balance due, refund offset or collection actions were taken
against the person for a year he or she did not file a tax return.
 IRS records indicate the individual received wages from an employer –
yet the taxpayer is unaware of them.
» When this type of tax identity theft
fraud occurs, an individual's refund
can be delayed for months or
longer while the IRS unravels who
is legitimate.
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5. » The number of tax-related identity theft cases has increased substantially
in recent years, according to the IRS Taxpayer Advocate Nina E. Olson.
» In her latest annual report to Congress, issued last month, Olson stated
that identity theft case receipts increased by more than 650 percent from
fiscal year 2008 to 2012. At the end of fiscal year 2012, the IRS had almost
650,000 identity-theft cases in its inventory servicewide.
» The IRS has faced criticism in its handling of identity theft cases from
many fronts, including the Taxpayer Advocate.
» In her latest report, she stated "the IRS has failed to provide effective and
timely assistance to victims of identity theft" and that a victim "is often
sent on a journey through IRS processes and procedures that may take
years to complete."
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6. The report added:
"The victims of tax-related identity theft suffer extraordinary
inconveniences and, in many cases, hardships. In general, more than 75
percent of U.S. taxpayers receive refunds, with the amount averaging
about $3,000. Identity theft victims generally cannot receive their
significant and sometimes urgently needed tax refunds until the IRS
resolves their cases, which is now taking six months or longer. The IRS's
failure to provide timely relief to these identity theft victims is simply
unacceptable."
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7. Last summer, the Treasury Inspector General for Tax Administration
(TIGTA) issued a report stating the IRS' difficulty in detecting tax-related
identity theft stemmed from:
1 Delayed access to third-party income and withholding information -
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Third parties are not required to submit income and withholding
documents to the IRS until March 31, yet taxpayers can begin filing
returns in mid-January. (This year, the beginning of filing season was
delayed until January 30 due to the "fiscal cliff" legislation enacted on
January 2.)
2 The use of direct deposits, including debit cards, to claim fraudulent tax
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refunds -
"Direct deposit provides the ability to quickly receive fraudulent tax
refunds without the difficulty of having to negotiate a tax refund paper
check," TIGTA noted. Tax refunds provided by the IRS on debit cards
allow a thief to make ATM withdrawals or spend the money on
purchases at stores.
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8. What Can You Do to Protect Yourself?
There is likely no way to fully protect yourself from tax related identity
theft but there are steps you can take to minimize the changes and reduce
the damage if you do become a victim:
1 Don't carry your Social Security card or documents with your Social Security
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number.
2 Don't give out your Social Security number to businesses or medical providers
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just because they ask for it. Give it only when required.
3 Protect your financial information. Shred documents with personal identifying
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information. Don't provide information in response to e-mail or text
messages. Don't give personal information over the phone unless you have
initiated the contact or you are sure you know who you are dealing with.
Secure personal information in your home.
4 Check your credit report every 12 months.
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9. 5 Protect personal computers by using firewalls, anti-spam/virus software,
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update security patches, and change passwords for Internet accounts.
6 File as early as possible in the tax filing season.
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Respond immediately if you receive a notice from IRS. If you believe someone
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7 may have used your Social Security number fraudulently, notify the IRS by
responding to the name and number printed on the notice or letter. You need
to fill out the IRS Form 14039, Identity Theft Affidavit.
If you are a victim, get an Identification Number from the IRS that proves you
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8 are the legitimate filer of future tax returns. The IRS issues Identity Protection
Personal Identification Number (IP PIN) to select identity theft victims whose
identities have been validated by the IRS. It allows legitimate returns to be
processed, and prevents processing of fraudulent returns, thereby mitigating
processing delays in victims' federal tax return processing. Generally, the IP
PIN is mailed out once the taxpayer's account has been resolved. Current
programming allows one IP PIN to be generated each year.
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10. 14550 Torrey Chase, Suite 100 Houston, TX 77014 USA
Toll Free : 877.880.4477
Phone : 281.880.6525
Fax : 281.866.9426
E-mail : info@hrp.net
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