As the new tax season looms, so does the threat of identity theft, a growing problem that puts millions of taxpayers at risk. A recent report from Erin M. Collins, the IRS national taxpayer advocate, highlighted the severity of this issue. She called the IRS’s current delays in resolving identity theft cases “unconscionable,” noting that nearly half a million taxpayers were affected in 2023.
The report revealed that the average time to resolve these cases is two years, a timeline Collins strongly urges the IRS to reduce to 90 days or less. The situation has been exacerbated by the reassignment of identity-theft case workers during the filing season, leaving many victims without timely resolutions.
For taxpayers, this calls for vigilance. Identity thieves are most active during tax season, making it crucial to take proactive steps to safeguard your personal information.
Steps to Protect Yourself from Tax Identity Theft
1. File Your Taxes Early
Tax experts, including tax attorney Adam Brewer, stress the importance of filing your tax returns as early as possible. “Don’t wait until April 15 or October 15. Get your return in early to prevent someone else from filing a fraudulent return in your name,” Brewer advises.
Filing electronically is another way to expedite the process. While paper filings might sit in processing for weeks or months, electronic submissions are processed much faster, reducing the window for fraud.
2. Use the IRS Identity Protection Pin
The IRS offers a six-digit Identity Protection PIN (IP PIN) to protect taxpayers from identity theft. This unique number is known only to the taxpayer and the IRS and helps block thieves from filing fraudulent returns using your Social Security number.
Taxpayers who have been victims of identity theft in the past will automatically receive a new PIN each year. However, anyone can proactively request one from the IRS for added security.
3. File Taxes Even If Not Required
Even if you don’t meet the income threshold for mandatory filing, consider submitting a tax return to block fraudsters from filing one in your name.
“For example, Social Security recipients or low-income individuals who don’t typically file may unknowingly leave the door open for identity thieves,” Brewer explains. Filing a return, even when not required, closes that vulnerability.
What to Do If You Become a Victim
If someone files a tax return under your name, the recovery process can be frustratingly slow, but there are steps you can take to address the issue:
- File a Police Report
While it may not directly resolve the matter, a police report can serve as additional documentation to strengthen your case with the IRS. - Submit a Paper Return
If someone files a fraudulent electronic return using your identity, you won’t be able to e-file. Instead, mail your return via USPS and send it certified for tracking. - Contact the IRS
Visit the IRS website to file an identity theft affidavit, open a support ticket, or request an IP PIN. These actions can help protect your account and streamline the resolution process.
Why Early Action Matters
Massive online security breaches are becoming increasingly common, and your personal information may already be in the hands of cybercriminals. By assuming this worst-case scenario, you can take steps to protect yourself proactively.
Collins’s report underscores the urgency for the IRS to address these delays. Until then, taxpayers must remain vigilant and proactive to safeguard their financial identities.
Take control of your tax filings this season—file early, secure an IRS PIN, and ensure your information is protected. Waiting could leave you vulnerable to costly delays and unnecessary stress.
Disclaimer: This article has been meticulously fact-checked by our team to ensure accuracy and uphold transparency. We strive to deliver trustworthy and dependable content to our readers.
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