Richard A. Lindsey, CPA Lindsey & Waldo, LLC – Certified Public Accountants
  • With Tax Identity Theft, You Have to Prove You’re the Victim -with Ashley Brown

    Filed under Informational, Taxes
    Oct 18

    The consequences that can result from having your tax identity stolen can be onerous. If your identity is stolen your tax refund will, more than likely, be held up by the IRS. A victim sometimes does not see her refund for a minimum of eleven weeks or until the victim can convince the IRS that she is truly a victim of identity theft. The burden of proving you have become a victim of identity theft is primarily placed on you, the victim. Victims of identity theft are sometimes faced with the possibility of lost job opportunities, being refused loans, education, housing or cars, or even being arrested for crimes she did not commit.

    Over the past year the IRS has put filters into place to address different issues or flags of identity theft. In 2012, the IRS planned on spending approximately $330 million to fight against identity theft, but due to limited resources additional funds are needed. The filters that were placed in service this last year help to differentiate justifiable returns from counterfeit ones and prevent recurrence. If a return is caught by a filter, it is reviewed manually to validate the information. To validate the information the IRS may contact the taxpayer to verify the correct information or the IRS may send a correspondence audit notice to the taxpayer.

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