The IRS and Identity Theft


As time goes on we become more aware of the fact that identity theft is not just about stealing credit.  But there is still a long ways to go in completely dispelling that myth.  By focusing so much attention on credit cards and bank accounts, we may be completely ignoring other areas of risk, like our social security number.

It’s tax season right now and a requirement on all tax returns is your social security number.  Your employer reports your income to the IRS using your social security number, but what if another employer you don’t work for is reporting income attached to your social security number?

It happens according to 2008 FTC statistics, the top states for employment related identity theft are:

  1. Arizona 33%
  2. Texas 27%
  3. New Mexico 23%
  4. Colorado 22%
  5. California 20%

*percentage of  reported identity theft cases*

The consequences for employment identity theft can include Tax Audits, loss of Tax return funds and charges for additional taxes owed.

There are so many suggestions on how to combat this trend but the most simple one has been overlooked, stop giving your social security number to everyone who asks for it!   Everyone who asks does not have a right or need to have it.

 

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2 comments on “The IRS and Identity Theft

  1. Hi There Pplcheryl63,
    I know what you mean, Are you a sufferer of identity theft? If so, you have to act shortly so the thief cannot bring about any more hurt to your finances. You would need to find out what to do and who to get hold of if your identification has been stolen.
    Good Job!

    • So true and that is the benefit of being proactive. When it happens you want to have something in place to mitigate the damage, not just with your finances but with your complete identity. The best product on the market today is Identity Theft Shield combined with a Life Events Legal Plan from LegalShield. We can’t stop it from happening, but we do work on your behalf to fix it!

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