Identity Theft

Identity theft is becoming a much more prevalent problem in the United States.  It can happen to anyone at any time.  There are numerous ways that thieves are attaining personal information.  Some of the most noted ways are from a stolen wallet, dumpster diving, phishing, change of address forms, ATM skimmers, mail theft and shoulder surfing. 
It’s important to be aware of how you dispose of sensitive information, such as junk mail, that may contain information valuable to identity thieves.  It is also a good idea to keep items with your Social Security Number out of your wallet or purse.  Be sure to log out of personal Web sites when using public computers.
Once thieves gather the information they need they are using it in many ways, including employment fraud, government documents fraud, phone or utilities fraud, credit card fraud and tax fraud.  This partial list gives an idea of things to watch for if you suspect your identity may have been stolen.  You may also contact the IRS Identity Protection Specialized Unit (1-800-908-4490), for additional information.
If your identity does get stolen and you provide the IRS with documentation substantiating such, they will issue you a six-digit Identity Protection PIN (IP PIN) to use on your income tax returns to bypass fraudulent return filters placed on the account.  Your tax return preparer will need to make sure that the IP PIN is specific to the year being filed as a new IP PIN is issued each year that there is an identity theft indicator on your account.
If you suspect your identity may have been stolen, please contact our firm.  We can assist you in contacting the proper authorities and submitting the appropriate documentation.
/posted by Becky Rogers, CPA