By Howard Kass, CPA, CGMA, AEP®
Partner
The IRS recently announced federal changes in their identity theft policy. In brief, the announcement, made June 1, states taxpayers whose identities have been compromised now will have access and full disclosure to their fraudulent returns.
While those who are affected by the breach of identity will now know just how dastardly the deed made in their name was, many in the public accounting industry are wondering why – or the benefit thereof – providing fraudulent returns to the taxpayer is necessary.
Compare this, for example, to receiving last year’s April Fool’s edition of your local newspaper.
How useful would that be to you?
Initiated by a request to the IRS from New Hampsh
As trusted advisors, we strive to create a comprehensive approach for your financial well-being, including steps you can take to protect yourself from identity theft and fraud. I’ve listed the top seven things you can do today to reduce the risk of fraudulent activity. ire Senator Kelly Ayotte, the government agreed to create a procedure of “request and response” for taxpayers that will allow them to receive redacted copies of fraudulent returns filed in their name and SSN. While it is possible that there may be some useable information derived from seeing the fraudulent return, it is far more likely that one may only satisfy their lingering curiosity and receive nothing of value from this exercise.
- Don’t routinely carry your Social Security card or any document with your SSN on it.
- Don’t give a business your SSN just because they ask. Find out why they really need it and only provide it when absolutely necessary.
- Protect your personal financial information at home and on your computer.
- Check your credit report annually. Every American is allowed a free look at their credit report annually from each of the three major credit reporting agencies.
- Check your Social Security Administration earnings statement annually.
- Protect your personal computers by
- using firewalls and anti-spam/virus software,
- update security patches and
- change passwords frequently for Internet accounts. Use strong passwords.
- Don’t give personal information over the phone, through the mail or the Internet unless you have either initiated the contact or are absolutely sure you know who is asking – and why they need it.
Related: Taxpayers and Identity Theft: How to Protect Yourself
Sadly, fraud and identity theft is now commonplace. Within a few short years, Americans have recognized that it is no longer a matter of simply worrying about credit card fraud during holiday shopping but, by virtue of our online, technology-driven world, we are at risk of becoming an identity theft victim through any entity that gathers, collects or transmits our personal information, including healthcare providers, state and federal agencies, lending institutions, or retailers, to name a few.
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