In today's digital age, the rise of online technologies has led to an increase in tax scams and identity theft cases, leaving many taxpayers vulnerable and anxious. If you suspect you've fallen victim to such fraudulent activities, this guide will walk you through the necessary steps to report the incidents and protect yourself effectively.

Recognizing Common IRS Scam Tactics

When dealing with the Internal Revenue Service (IRS), safeguarding your personal and financial information is paramount. The IRS will never initiate contact via email, text messages, or social media to request sensitive data. If you receive suspicious communications, follow these verification steps:

  • Verify the sender: Check whether emails or texts originate from official IRS channels.
  • Avoid clicking links: Never click on embedded links; instead, visit the IRS website directly.
  • Contact the IRS: When in doubt, call the official IRS helpline for confirmation.

Reporting Identity Theft: Step-by-Step

1. Stolen Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)

If your SSN or ITIN has been compromised and used for fraudulent tax filings, take immediate action:

  • Call the provided helpline: Respond promptly to any IRS notification about suspicious filings under your identity.
  • Complete Form 14039: Submit the Identity Theft Affidavit online or by mail to formally document the theft.
  • Follow up: For unresolved issues, contact the IRS at 800-908-4490 for further assistance.

2. Employment-Related Identity Theft

When your SSN is used for unauthorized employment purposes, watch for these red flags:

  • Unfamiliar tax forms: Receiving W-2 or 1099 forms from unknown employers warrants immediate verification.
  • Notices about unearned income: If the IRS or Social Security Administration alerts you about wages you didn't earn, secure your information immediately.

3. Unemployment Benefits Identity Theft

Upon receiving an unexpected Form 1099-G for unemployment benefits:

  • Notify state agencies: Report the fraud to your state's unemployment office to correct the form.
  • Research resources: Consult online guides about unemployment benefit identity theft for additional protection measures.

Reporting Business Identity Theft

If your Employer Identification Number (EIN) has been misused:

  • Verify EIN applications: Confirm whether someone fraudulently obtained an EIN in your name.
  • Submit Form 14039-B: File the Business Identity Theft Affidavit if misuse is confirmed.
  • Call for support: Contact 800-908-4490 for specialized assistance with business-related identity theft.

Reporting Tax Scams

To report suspected tax scams—including abusive tax schemes or misconduct by tax preparers—use Form 14242 . You may submit it online or by mail to ensure proper documentation. For details about abusive tax promotions, refer to official IRS resources.

Conclusion

Tax scams and identity theft pose significant threats in our interconnected world. By staying vigilant, promptly reporting suspicious activities, and securing your personal information, you can substantially reduce your risk of becoming a victim. Always remain informed and take decisive action when potential fraud arises.