In fraudulent tax filings, criminals submit tax returns for other people, using stolen information such as Social Security numbers and employer information. They then direct the IRS or state treasury departments to pay the refunds into their own accounts.  The IRS investigated almost 1500 cases in 2013, a surge of 66% from the previous year.

A typical identity theft victim will find out by filing their tax return and learn the IRS can’t process it because someone else has filed using their name and Social Security numbers. You may also get a suspicious piece of mail from the bank offering a refund anticipation loan, or from the IRS.

Taxpayers who have been targeted by identity theft should file a report with the local police; file a complaint with the Federal Trade Commission (FTC); and place a fraud alert on their credit bureau file.

To file a complaint with the FTC, go to www.ftc.gov/complaint.

To place a fraud alert, you must first contact a credit reporting company.  Report that you are an identity theft victim and ask the company to put a fraud alert on your credit file.  Confirm that the company you call will contact the other two credit report agencies for you.  Placing a fraud alert is free.  The initial fraud alert stays on your credit report for 90 days, but you can renew it after 90 days.

Credit Reporting Companies

Equifax, 1-800-525-6285

Experian, 1-888-397-3742

TransUnion, 1-800-680-7289