The Ongoing Fight Against Tax Identity Theft

The Ongoing Fight Against Tax Identity Theft

May 16, 2016 – The House passed H.R. 3832, or the The Stolen Identity Refund Fraud Prevention Act of 2016. This bipartisan bill was first proposed by Rep. Jim Renacci in October of 2015 as a way of protecting american taxpayers from identity theft tax fraud. This bill was co-sponsored by Rep. John Lewis and is currently making its way to the senate.

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As a Victim of Tax Scam

Tax-related identity theft is one of the worst issues that the Internal Revenue Service (IRS) is still working on, as this kind of crime is continuously evolving with the use of technology, tax scam is surely a huge threat to every taxpayers.

Rep. Jim Renacci is no stranger to this , as he became a victim of this tax scam. According to a statement by Rep. Renacci, he said:

“This past tax season, someone used my stolen personal information and filed a fraudulent tax return in my name, claiming a refund. I didn’t learn about this fraud until I received an IRS notice questioning a return I had filed—even though I had not yet even filed.

Rep. Renacci also heard very similar cases of identity tax fraud from Northeast Ohio taxpayers. He also believes that the congress and the IRS should work with each other in order to stop these kinds of crimes.

Provisions for this Bill

Here are some provisions included in H.R. 3832:

  • A centralized point of contact at IRS for victims of identity theft
  • Improving taxpayer notification of suspected ID theft;
  • Requiring the IRS to submit a study on the feasibility of establishing a program for victims of identity theft-related tax fraud to opt out of electronic filing; and
  • An Information Sharing and Analysis Center (ISAC) which collects, analyze, and share actionable data and information to detect and prevent identity theft.

Preventive Measures to Take

You should always notify the IRS once you think that your SSN (Social Security Number)  is already being used for fraudulent tax returns. Now, if the IRS confirms about this then you have to make the move, and respond accordingly to them by giving them a call or by going to IDVerify.irs.gov.

Remember that you should also complete federal form 14039, which serves as an affidavit for identity theft. You can also conduct follow ups with the IRS Identity Protection Specialized Unit by calling 1.800.908.4490.