Identity Theft and Its Effect on Taxes

 Posted on January 31, 2018 in Identity Theft

We are now approaching tax season, and many of us are not looking forward to getting them filed. Over the past few years, since the evolution of technology, the number of people affected by identity theft has increased, and that number, unfortunately, continues to grow. Identity theft has been shown to affect tax documents and pertinent information, and individuals filing their taxes during the season may face serious issues because of the type of theft that had occurred.

Ways the IRS Has Tried to Combat Identity Theft

To combat the ever-growing issue of identity theft and how it can adversely affect tax information, the Internal Revenue Service (IRS) created a way for individuals to be better protected from identity theft. This tool was called the Identity Protection PIN (IP PIN), and, in 2016, the IRS suspended the tool because of a potential security breach. The IP PIN was supposed to be used for individuals affected by identity theft and fraudulent tax returns so that they could have their own personal identification number (PIN) that would confirm their identity before a tax return would be filed. The tax return would be rejected if the PIN was entered incorrectly.

Identity thieves started taking PIN numbers from those already affected, causing the suspension of the tool. In 2014, a number of individuals who had been affected by identity theft had tried to use their IP PIN to file their tax returns, but could not do so because of the security breach. The IRS had discovered and ended 800 fraudulent returns using a stolen IP PIN or fraudulent tax return.

Identity thieves are always changing their strategies of obtaining sensitive information, and the IP PIN was the strongest tactic that the IRS had created, which was severely compromised.

Call a Chicago Criminal Defense Attorney

Being charged with identity theft is a very serious crime that comes with unwanted consequences. If taxes are involved, then there are many problems that both you and the taxpayer will have to face. If you have been accused of identity theft, that could potentially cause serious damage to tax information, you need legal representation. At the Law Offices of Hal M. Garfinkel LLC, Chicago Criminal Defense Attorney, we understand how being charged with a crime can affect your employment opportunities, your relationships, and quality of life. To schedule a free consultation, please call an experienced Chicago federal crimes defense lawyer at 312-629-0669 to discuss your case.

Source:

https://www.cbsnews.com/news/the-irs-identity-theft-prevention-tool-is-broken/