|Be on guard against identity theft on client tax returns|
A number of recent reports about fraudulent federal income tax returns being filed by thieves using individuals’ social security numbers (SSN) has led the IRS to issue tips for tax preparers on how to spot fraudulent activity and what to do about it.
According to the IRS newsletter issued Tuesday, March 3, "you may be unaware your client is a victim of identity theft until you attempt to file the tax return and it is rejected. Your client also may receive an IRS notice regarding:
If your client’s SSN has been compromised, whether from a data breach, computer hack or stolen wallet, and he or she has reason to believe there is a risk of tax-related identity theft, you should take these steps, according to the IRS:
The IRS has a number of resources available for tax preparers to help thwart tax fraud. Click here to access a page with links to those resources.