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How Identity Theft Can Delay Your Tax Return

Posted on: April 26th, 2013

Tax FrustrationMore and more identity theft will cause more problems than citizens can imagine. Just recently citizens in South Florida realized that identity theft would cause then a 12-15 month delay in receiving their tax refund. According to one citizen, someone filed a fraudulent return in 2011 which caused panic when the time came for her to file her 2012 delay.

Another individual failed to receive her refund when someone filed a fraudulent return with the IRS, stealing her refund. For this humble citizen, it took almost a year to clear up the error. Scammer will work diligently to steal citizen’s identity, and their money. According to statistics from the IRS, there are nearly 300,000 people that have stolen refunds and are waiting retribution from the IRS.

What To Do With IRS Identity Theft

According to one teacher, her IRS refund was stolen not once but twice, once in 2010 and again the following year. The teacher claims she put a fraud alert on her IRS return but that did not resolve the problem. Many believe it is a nationwide scam that is preventing people from receiving their tax refunds.

Still others blame the system which is old and hasn’t kept up with technology. There is much fraud that co-exists with old systems. Congress is introducing new laws that will increase penalties associated with hackers and scammers that file fraudulent tax returns. But these penalties can only apply to people that are caught filing the false tax returns. And, this doesn’t require the IRS to speed up the rate with which they pay out the money to individuals that have been victimized by hackers.

Citizens are working to get special codes from the IRS to protect their identity and ensure their tax returns are filed properly. In some cases citizens and victims of identity theft have had to work with news reporters to get the IRS to respond to their complaints.

How To Be Secure

What can you do to protect your identity? Make sure you keep all of your passwords in a safe place. Do not store them on your computer. Keep them in a separate notebook at home. Change your passwords regularly. Make sure you get a security key or code word from the IRS or other agency where fraud has occurred so you can protect yourself.

If necessary use a paid proxy services to access the internet, particularly if you file your tax returns electronically. This will allow you to surf the Net anonymously and protect your computer form malware and other software applications that may harm your computer systems.

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