Identity thieves target your tax refund

Some electronically filed tax returns have been rejected by the IRS, because a return had already been received using the same social security number.  They call this rejection code 0515.

Could these be simple typos?  Sure.  But they may also be an indicator of identity theft. Fraudulent tax returns totaled nearly 1 million last year!

The Sun Sentinel reported this week that “Tax fraud involving stolen identities has already affected hundreds if not thousands of Floridians this year.”  Thieves have been targeting tax refunds, and many refunds have been sent to fraudulent addresses.    On Wednesday Senator Bill Nelson called for a federal investigation.

Here’s what you or your accountant should do if you get a notice that your return has been rejected for code 0515.

1. Check the accuracy of Social Security number used for filing.  Compare it to your Social Security card or Form 1099 from Social Security Benefits.
2. If it’s not a typo, call the IRS at the number on the rejection notice to see if they can provide any further information and let them know the social security number used in your filing is correct.
3. If your accountant is involved, give them Power of Atty – Form 2848 – so they can talk to IRS about the issue on your behalf.
4. File a new paper copy of your return with Form 8948 (Preparer Explanation for Not Filing Electronically) via certified mail (return receipt) as soon as possible.
5. Prepare and file Form 14039 Identity Theft Affidavit with IRS. You can go directly to an IRS office to file the Affidavit in person and receive an IRS stamped copy of the Affidavit.  Note:  If the IRS determines there was a fraudulent return filed by someone else,  the IRS may issue a PIN number to be used when filing future tax returns.
6. Get your credit report and review recent activity.  If there is suspicious activity, contact your credit card companies and banks to notify them, and put a password in place to block any further activity.
7. File a police report with local police department. Note: some police departments are requesting an IRS stamped copy of the Identity Theft Affidavit before they will prepare a police report.

Here’s more information to prevent and detect ID  theft.  Contact Kaufman, Rossin for assistance with these and other tax issues.