Safeguard Against Tax Fraud
Protecting Yourself and Your Business from Tax-Related Identity Theft
In today’s digital age, tax-related identity theft is a growing concern for businesses and individuals alike. Criminals exploit stolen Social Security numbers (SSNs) and Employer Identification Numbers (EINs) to file fraudulent tax returns, often resulting in significant financial losses and administrative burdens. At DPCTax (or A-ccountingandta.com), we are committed to helping you safeguard your business and personal financial data against these threats.
Warning Signs of Tax-Related Identity Theft
For Individuals:
Rejected Tax Returns:
If your tax return is rejected because your SSN has already been used, this is a key indicator of identity theft.
Unfamiliar IRS Notices:
Receiving IRS notices about tax returns you did not file, or after all your tax matters have been resolved, may suggest fraudulent activity.
Unknown Employer Wages:
Notices of wages from an employer you do not recognize are a significant red flag.
For Businesses:
Amended Returns:
If a return is accepted as amended without your knowledge, identity theft could be the cause.
Fictitious Employees:
Receiving IRS notices regarding employees who do not exist in your company records could indicate that your business information has been compromised.
Dormant Business Activity:
Notices related to a defunct or dormant business could suggest fraudulent activity under your business name.
Quick Tips to Protect Your Data
Never carry your Social Security card or documents with your SSN unless absolutely necessary.
Always ensure you are sharing personal information only on encrypted websites, and regularly update your passwords.
Regularly check your credit report and Social Security Administration earnings statement to identify any unusual activity.
Use up-to-date security software, including firewalls, antivirus protection, and file encryption for sensitive data.
What to Do if You Are a Victim
If you suspect you’ve been a victim of tax-related identity theft, follow these steps:
1. File a Complaint: Report the identity theft to the Federal Trade Commission (FTC) at identitytheft.gov.
2. Contact Credit Bureaus: Place a fraud alert on your credit records with Equifax, Experian, or TransUnion.
3. Report to the IRS: Complete IRS Form 14039, Identity Theft Affidavit, and follow the necessary steps to correct your tax return.
Resources and Assistance:
At A-ccountingandtax.com, we offer comprehensive services to help you prevent, detect, and resolve tax-related identity theft. Our team of professionals can assist you with:
•Filing the necessary forms with the IRS
•Setting up monitoring and alerts
•Implementing security measures in your business
For more information, or to schedule a consultation, contact us today.