Identity Theft Concerns

[Tax Sleuth]

Someone has been scammed and has had sensitive, tax-related information stolen. I don't know the specific details. Should that person contact the IRS about this data breach? What steps should be followed in this case?

[John of PA]

1) They should contact their malpractice insurance carrier. 2) Contact their IRS liason for their area. These would be the first steps. It will be a little rough but they will get through it. Warning to all. Be very discreet on opening any emails or clicking any links, if your not sure, don't click it.

[Twin Turbo Z]

Here you go. https://www.irs.gov/individuals/how-...sistance-works

[John of PA]

Is "the person' a taxpayer or a tax pratitioner?

[Tax Sleuth]

Next Steps

The taxpayer is not a tax practitioner. She was tricked into giving her sensitive information. Do we have to wait for a fraudulent return to be filed before taking action or are there preventative steps that we can take now with the IRS? What steps should be followed?

[Lion]

Freeze credit reports at all agencies. Federal Trade Commission has a free book on steps to take, sample letters, telephone/contact information, etc. FTC.gov/IDTheft Also, see IdentityTheft.gov

[taxea]

https://www.irs.gov/pub/irs-pdf/f14039.pdf

Generally speaking, you need an event (and a police report) to file this form. "Suspicion" does not count.

FE

I hope the TP has information on the person the information was given to. It should be reported to IRS fraud unit even if it doesn't qualify fora 14039

[Anarchrist]

This is the list I give clients.


Tax Return Identity Theft Procedures

1. Contact Social Security Administration at 1-800-772-1213 to verify the info they have for you.

2. Call the irs identity theft hotline at 1-800-908-4490 (M-F 7am to 7pm) to verify if a return was filed using your social security number and follow any suggestions they make.

3. Verify address with irs. File form 8822 - Change of Address to update irs’s records if needed.

4. File form 14039: www.irs.gov/pub/irs-pdf/f14039.pdf

5. Consider requesting copy of the fraudulent return with Form 4506. There is a fee to obtain an actual copy of a tax return but you can request a transcript of the return for free.

6. Contact your financial institutions and credit card companies to inform them of the situation and take appropriate action to safeguard your accounts.

7. Contact the three credit bureaus to place a fraud alert and get free copies of credit reports. Consider putting a freeze on your credit. Ask them to explain what your various options are.

Equifax: 1-800-525-6285 or https://www.alerts.equifax.com/AutoF...fraudAlert.jsp

Trans Union: 1-800-680-7289 or http://www.transunion.com/personal-c...ud-alerts.page

Experian: 1-888-397-3742 or https://www.experian.com/fraud/center.html

8. Review your credit report for inquiries from companies you have not contacted, accounts you did not open, and debts on your accounts that you cannot explain.

9. Contact the Federal Trade Commission: https://www.ftccomplaintassistant.gov/ or 1-877-438-4338

10. File police report with local law enforcement. Most likely the local police won't do anything about this, but it's probably a good idea to file a report.

11. For more detailed info, see http://www.consumer.ftc.gov/articles...ing-charge.pdf

[DonB]

I like your list. I am saving it to hopefully never have to use it.

Can you imagine the trouble a preparer would have to endure if his/her client data was hacked and it was disclosed to the IRS and clients? What would happen?