Washington News

The IRS has announced that it is cracking down on suspected identity thieves. In January of 2013 there were 734 enforcement actions. During the past fiscal year, there have been 109 arrests and 189 indictments.

Identity theft for obtaining tax refunds is a rapidly growing problem. The identity thieves obtain a Social Security number and attempt to file before the victim completes his or her IRS Form 1040. By filing and recovering a refund, the identity thief may benefit through assuming the identity of a lawful taxpayer.

IRS Acting Commissioner Stephen Miller stated, "As tax season begins this year, we want to be clear that there is a heavy price to pay for perpetrators of refund fraud and identity theft. We have aggressively stepped up our efforts to pursue and prevent refund fraud and identity theft, and we will continue to intensely focus on this area."

In fiscal year 2011, there were 80 persons sentenced for identity theft. This number increased to 223 in fiscal year 2012. The IRS credits many of the successful prosecutions to changes in their software. The software now will flag multiple refunds to one person or to one address.

The www.irs.gov website includes pages on taxpayer protection. A person may go to that website and search "identity theft." In addition to viewing YouTube videos, taxpayers may follow specific recommendations to protect themselves.

1. IRS eMail – Do not open unexpected emails that claim to be from the IRS. Forward them to phishing@irs.gov. The IRS does not ask for taxpayer information by email.

2. Be Alert – Protect your wallet or purse. Do not give personal information to a stranger on the phone or through the internet.

3. Stolen Social Security Number – If it appears that someone is using your Social Security number to obtain employment and you see their income reported on your tax information, report it to the IRS.

4. Protect Your Social Security Number – Do not carry documents in your wallet or purse with your Social Security number.

5. Potential Theft – If you believe your identity has been stolen, file IRS Form 14039, Identity Theft Affidavit. You may also contact the IRS Identity Protection Specialized Unit at 800-908-4490.

6. Computer Tax Software – If you prepare your tax return with software, use a strong password. A strong password has 10 to 12 (or more) characters with a combination of text and numbers. You also may wish to save your tax records on a flash drive that is placed with your return in your personal records. You may then delete your tax return data from your computer hard drive.