It’s tax season for you and a veritable identity gold mine for thieves!
Empowered with a name and Social Security number, crafty thieves can open credit cards, take out loans, wipe out your bank account and even file a tax return in your name to get a fraudulent refund with just a few clicks on the keyboard.
How common is tax-related identity theft?
Tax identity theft is generally less common than other identity theft and fraud types, such as someone stealing and using your credit card account or opening a new credit account using your identity.
Tax identity theft has also decreased in prevalence over the past few years. In part, this is due to a joint effort by the IRS, state tax agencies, private tax preparation companies, tax professionals, payroll processors, and financial institutions. Together, they formed a Security Summit in 2015 to fight refund fraud, often perpetrated by organized crime syndicates.2
From 2015 to 2019, there was an 80% decline (677,000 to 137,000) in the number of taxpayers who filed IRS identity theft affidavits—a form you attach to your tax return if you’re the victim of tax identity theft.
In addition to responding to taxpayers who report being victims of identity theft, the IRS actively identifies suspicious returns. It then reaches out to taxpayers to confirm their information before processing the return. In 2019, the IRS says it stopped 443,000 confirmed fraudulent returns (which would have resulted in $1.9 billion in refunds) from being processed.
What Are Some Signs of Tax Fraud?
- The IRS rejects your e-filed return because your Social Security number was already used to file a tax return
- The IRS sends you a tax transcript, or you receive a notice that an online account has been created, accessed, or disabled when you didn’t take any action
- The IRS sends you a notice saying you owe taxes, your refund is offset, or they’re taking collection actions against you because of a tax return from a year when you didn’t file
- Your state unemployment agency sends you a Form 1099-G, but you didn’t collect unemployment
- You receive tax forms, such as a W-2 or 1099, from a company you didn’t work with during the year
If the IRS suspects your identity has been stolen, they may send you a letter asking you to verify your information. We’d like to work ahead of the game and help you learn some ways to protect your identity. Contact us today at (540) 720-5656.
Adapted from the IRS1 2
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter. Chase, as a fiduciary, believes in putting his clients interests first, and building out plans for his clients where they can have a happy and fruitful retirement. He married his beautiful wife in February 2022 and both use most of their free time chasing around their little pup, Aurora.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.