Be On the Lookout: Criminals Filing Tax Returns in Your Name

Here’s a scary fact: The Federal Trade Commission (FTC) reported that individuals lost over 10 billion dollars to fraud in 2023—a 14% increase from the previous year—with over 2.6 million consumers falling victim.¹

Furthermore, headline-making data breaches have made this issue even more pressing by exposing millions of taxpayer identification numbers.

How Criminals Operate

Tax scammers use various tactics, including:

• Filing false returns using stolen Social Security numbers
• Impersonating IRS officials
• Making aggressive threats about arrest or legal action
• Sending suspicious links or phishing emails
• Demanding payment through gift cards
  
  

Know How the IRS Works

The IRS follows specific procedures when contacting taxpayers:²

• They typically initiate contact through U.S. mail, not email or phone
• They won't email without prior consent
• They don't send direct messages on social media
• They rarely make phone calls without sending written notice first
• In-person visits are limited and include official credentials

Five Steps to Protect Yourself

1. Take IRS notices seriously and verify their legitimacy
2. Be cautious of emails or calls claiming to be from the IRS
3. Monitor your financial accounts regularly
4. Use strong passwords and multi-factor authentication
5. Check your IRS transcript history for unauthorized activity

If You're Targeted

Act quickly if you suspect tax return fraud:

• Contact the IRS Identity Theft Hotline: 1-800-908-4490
• File Form 14039 (Identity Theft Affidavit)
• Place a fraud alert with credit bureaus
• Work with your tax professional or consider contacting us—we might be able to offer some guidance and support

We provided this blog update for information purposes only and remind everyone that it’s not a replacement for real-life advice. If you are concerned that your tax filing has been compromised or fear that it could be in the future, we encourage you to consult with your tax, legal, or accounting professional about specific steps you can take to proactively manage your situation.

For more information, consider visiting the IRS Tax Scams page https://www.irs.gov/help/tax-scams/recognize-tax-scams-and-fraud, or explore resources like the FTC’s Consumer Protection updates.

^{1. Federal Trade Commission, February 9, 2024}

^{2. Internal Revenue Service, November 2024}