Detecting and Combating Identity Theft

What is Taxpayer Identity Theft?

• Tax-related identity theft occurs when someone uses a stolen Social Security Number (SSN) to file a tax return to claim a fraudulent refund.

• SSNs can be stolen through a data breach, computer hack, or lost wallet. Although it affects a small percentage of returns, it can have a major impact on victims by delaying their refunds.

Halt, Buzas and Powell, Ltd. – January 30, 2015

How Do I Avoid Becoming a Victim?

• Here are simple, practical steps you can take to avoid becoming an identity theft victim:– Don’t carry your social security card or any documents that include your SSN or

Individual Taxpayer Identification Number (ITIN).– Don’t give a business your SSN or ITIN unless absolutely required.– Take extra care to protect your financial information.– Check your credit report at least once every 12 months.– Review your Social Security Administration earnings statement once every 12

months.– Secure your personal information at home.– Protect your personal computers by using firewalls and anti-spam/virus software.– Update software security patches and regularly change passwords for Internet

accounts.– Don’t give personal information over the phone, through the mail, or over the

Internet unless you know for sure who you are dealing with.

Halt, Buzas and Powell, Ltd. – January 30, 2015

What Are Some of the Warning Signs of Identity Theft?

• You should be concerned about identity theft if you learn from tax professional that:– More than one tax return was filed for you.– You owe additional tax, have a refund offset or have had

collection actions taken against you for a year that you did not file a return.

– IRS records indicate that you received more wages than you actually earned.

– Your state or federal benefits were reduced or cancelled because the agency received information reporting an income change.

Halt, Buzas and Powell, Ltd. – January 30, 2015

What Steps Should I Take If I Think I’ve Been a Victim?

• The following steps should be taken if you believe you have been a victim of identity theft:– File a report with the local police.– File a complaint with the Federal Trade Commission

(FTC) or the FTC Identity Theft hotline.– Contact one of the three major credit bureaus

(Equifax, Experian, or TransUnion) to place a “fraud alert” on your account.

– Close any accounts that have been tampered with or opened fraudulently.

Halt, Buzas and Powell, Ltd. – January 30, 2015

What Steps Should I Take If I Think I’ve Been a Victim?

• If your SSN has been compromised and you know or suspect you may be a victim of tax-related identity theft, you should contact our office right away. Please provide copies of any notices you received. We will assist you in completing Form 14039: Identity Theft Affidavit.

Halt, Buzas and Powell, Ltd. – January 30, 2015

Questions?

• If you have been victimized by tax identity theft, resolving this matter and protecting your identity is important. Please contact our tax department if we can assist you in any way.

Halt, Buzas and Powell, Ltd.(703) 836-1350

info@cpas4you.comwww.cpas4you.com