Page 74 - April 2015 Life In Naples Magazine

FINANCE
IRS SCAMSDON’T BECOME A VICTIM
Wby Michael Wiener, E.A.
ith identity theft and fraud always prevalent, I
continue to advise my clients on how to avoid
becoming a victim. Pervasive telephone scams,
another form of identity theft and fraud, is becoming increasingly
common. Identity theft and pervasive telephone scams top The
IRS “Dirty Dozen” List (listing complied each year by the IRS
showing a variety of common scams taxpayers can encounter
throughout the year).
The IRS has seen a recent increase in
telephone scams across the country, with
callers pretending to be from the IRS in
hopes of stealing money or identities from ask. Give it only when required and you know who is asking for
victims. I have also had several clients
report receiving these types of calls.
The telephone scams include many
variations, ranging from instances from
where callers say the victims owe money
or are entitled to a huge refund. Some
calls can threaten arrest and threaten a
driver’s license revocation. Sometimes
these calls are paired with follow-up calls from people saying
they are from the local police department or the state motor
vehicle department.
REPORTED CHARACTERISTICS
OF THESE SCAMS CAN INCLUDE:
• The use of fake names and IRS badge numbers when calling
• The scammer may be able to recite the last four digits of a
victim’s Social Security Number
• The scammer will “spoof ” or imitate the IRS toll-free number
on caller ID to appear it is actually the IRS calling
• Scammers will sometimes send bogus IRS emails to victims to
support their bogus calls
In cases where identity theft occurs typically an identity thief
uses a legitimate taxpayer’s identity to fraudulently file (E-File) a
tax return and claim a refund early in the filing season. You may
be unaware that this has happened until you file your tax return
later in the filing season and you will get a notice that two returns
have been filed using the same SSN. Thus innocent taxpayers are
victimized because their refunds are delayed.
If you or your tax professional receives notice from the IRS that
your tax records may have been compromised,respond immediately
to the name and/or number printed on the notice or letter. You
will have to fill out IRS Identity Theft Affidavit Form 14039. In
addition the IRS will issue a six- digit identity protection (IP) PIN
number that must be used when filing your tax return. IP PIN’s are
74
valid for only one year. A new number is issued every year for three
years after the identity theft incident.
HERE ARE SOME TIPS TO HELP YOU PROTECT
YOURSELF FROM BECOMING A VICTIM OF IDENTITY
THEFT AND PERVASIVE TELEPHONE SCAMS:
• Don’t carry your Social Security card or any documents that
display your SSN or Individual Taxpayer Identification Number
(ITIN)
• Don’t give a business your SSN or ITIN just because they
information
• Check your credit report every 12 months
• Secure personal information in your home, including using
computer firewalls, anti/virus software, update security patches and
change passwords for internet accounts
• Remember the IRS does not typically initiate contact with
taxpayers via phone or email for an initial request for financial
information or payment. This includes any type of electronic
communication such as text messages or social media.
• If your tax records are not currently affected by identity theft,
but you believe you may be at risk due to a lost or stolen purse, or
wallet, questionable credit card activity or credit report, you may
consider contacting the IRS Identity Protection Specialized Unit.
• If you’ve been targeted by these scams, you can contact the
Federal Trade Commission and use their “FTC Complaint
Assistant” at FTC.gov. Please add “IRS Telephone Scam” to the
comments of your complaint.
In my practice I have seen where identity theft cases are
extremely complex to resolve, frequently touching on multiple
issues and multiple tax years. We must continue to remain vigilant
to guard our personal information.
If you should have a topic that you would like me to
discuss or if you should have a question, please feel free to
call 239.403.4410 or e-mail me at
mike@cctaxandaccounting.com.
An enrolled agent, licensed by the US Department
of the Treasury to represent taxpayers before the IRS
for audits, collections and appeals. To attain the enrolled
agent designation, candidates must demonstrate expertise
in taxation, fulfill continuing education credits and adhere
to a stringent code of ethics.
Life in Naples | April 2015