Archive for Thursday, June 2, 2011

Taxpayer identity theft is soaring

June 2, 2011


— Imagine filing your tax return and learning that someone else got your refund. With your name and Social Security number, no less.

The IRS is grappling with a nearly five-fold increase in taxpayer identity theft between 2008 and 2010, a Government Accountability Office official plans to tell a House hearing Thursday. There were 248,357 incidents in 2010, compared to 51,702 in 2008.

The GAO findings, obtained by The Associated Press, don’t begin to describe the pain for a first-time victim, who must wait for a refund while the IRS sorts out which return is real and which is a fraud.

Many identity thieves don’t get prosecuted, according James White, director of strategic issues for the GAO.

“IRS officials told us that IRS pursues criminal investigations of suspected identity thieves in only a small number of cases,” White says in testimony prepared for a House Oversight and Government Reform subcommittee.

He said that in the 2010 fiscal year, the IRS criminal investigations division initiated just over 4,700 investigations of all types — far less than the identity theft cases alone.

“We want to know why this problem is apparently getting much worse,” said Rep. Todd Platts, R-Pa., chairman of the subcommittee. “By bringing these issues to the public as quickly as possible, the committee hopes to give citizens the necessary information so they can protect themselves from such identity theft.”

IRS Commissioner Douglas Shulman, in his prepared statement, defended the criminal investigation record. He said his criminal division concentrates on schemes of national scope and added that 95 percent of those prosecuted for refund-related identity theft go to prison.

Tax identity thieves typically submit returns for refunds early in the filing season. The legitimate taxpayer usually files later, and only then learns from the IRS that two returns were filed using the same Social Security number.

Some thieves steal a name and Social Security number to obtain a job. The employer will report the thief’s wage information to the IRS, as would the legitimate taxpayer’s employer. The victim then would receive an unwelcome IRS notice that he or she failed to report everything that was earned. The victim would then need to work with the tax agency to sort things out.


kernal 6 years, 11 months ago

A reminder to people to not carry their Social Security card with them as a form of I.D.. Keep it in a safe place.

Do NOT throw out ANYTHING with your social security number, bank account information or credit card information. Some dumpster divers are looking just for that kind of information and will sell it. You could end up with five to ten people using your name and social security number illegally. This could wreck havoc with your future social security benefits, your credit rating and ability to get financing for a car, a home (rental or mortgage) or a new job.

If you can't afford to buy a shredder, check with your bank and see if they will shred this information for you. Some banks have a company come in once a year and shred confidential documents for their customers.

Bruce Liddel 6 years, 11 months ago

Don't give a medical health professional your SSN, even if they insist it is necessary to bill insurance. It isn't. Most Dr Offices are incredibly sloppy in handling sensitive patient data. Ironically, HIPAA exempts the SSN from the requirement that health care providers protect your privacy, so if you consent to give your SSN, then by extension you consent to have your identity stolen. In a real medical emergency, go to LMH, and NOT to one of the fly-by-night identity theft rings in the south part of Lawrence.

LadyJ 6 years, 11 months ago

School district always insisted on having my kids SSN which I refused to do. Do they take steps to protect that info or do employees have access to it whenever?

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