New Tax Fraud Prevention Measures

IRS ID Verify…

In response to the increasing tax-related identity theft problem, the Internal Revenue Service (IRS) and most state’s Department of Revenue are taking additional measures to review tax returns for signs of fraudulent activity. Your return could potentially be flagged for various reasons or at random. As a result, you could be asked to verify your identity and/or the information reported on your tax return. If you’ve been officially notified or your refund is being delayed it could cause alarm and frustration. However, please remember that the overall goal is to reduce the number of fraudulent returns nationwide and possibly protect you against identity theft.

Here are a few tips on how to handle this.

1. CONFIRM
   • Only those who receive a 5071C Letter from the IRS concerning their federal refund should use the IRS ID verification system. The letters are sent to you via U.S. mail. Confirmation for state refund delays can be obtained by contacting your state’s Department of Revenue if the processing time exceeds 45 business days.
   • If you did not receive a notice but your refund is being delayed: Contact the IRS at 1-800-829-1040 for a federal refund, or your state’s Department of Revenue for a state refund to determine the reason for the delay.
2. VERIFY
   • Once you’ve confirmed that you will need to either verify your identity or the information reported on your tax return, act immediately and determine the deadline to comply.
     • The IRS offers only two ways to verify your identity: Online at the IRS Identity Verification Service website or by phone at the toll-free number listed on your 5071C Letter.
     • Incorrect responses to verification questions will further delay the processing of your return.
     • The state Department of Revenue will request that you call their offices during normal business hours to verify your identity and/or that you provide additional proof of expenses such as: Receipts, mileage logs and bank statements by fax or mail to resume processing.
3. BE PREPARED
   What you will need in order to verify your identity:
   1. Your previous year’s tax return
   2. Your current year’s tax return
   3. All supporting forms and schedules within the tax returns
4. BE PATIENT
   • If the verification proves you are the person named on the return and that you personally filed the return, the return will be processed. After successful verification, it can take an additional 6 to 9 weeks from the date you completed verification to complete processing.
   • The return will be rejected and investigated as identity theft/tax fraud if:
     • Verification fails to confirm your identity or that you filed the return
       If the verification process is not completed, or can’t be completed confirm, verify, be prepared, be patient

If you need assistance with this matter please contact our office at (678) 288 4811.