Sunday, April 14, 2013

Is the IRS losing the battle against Identity Theft?

Believe it or not, there is something even worse than having to prepare your tax return. It's finding out that someone else already filed a return in your name, under your Social Security number, to collect a fraudulent refund. 
And that's just the beginning of your troubles. 
At best, it takes about six months for the IRS to resolve an identity theft case. At worst? It can take more than a year. All the while, victims wait for their rightful refunds, and thieves sometimes strike again. 
Identity theft is a big and growing problem, and the crooks appear to be one step ahead of the IRS. 
Last year, the number of incidents reached 1.8 million, J. Russell George, the Treasury inspector general for tax administration, told a Senate panel this week.
One of those victims, Marcy Hossli, of Lake Worth, Fla., testified the IRS notified her 13 months ago that her identity had been stolen and that refunds went to a thief for tax years 2010 and 2011. The agency promised a resolution in three months and a special PIN number to include with her next return. She's still waiting for the PIN. Hossli e-filed her 2012 return on Feb. 21, but soon learned she was again the victim of a thief.
Read the rest of the op-ed HERE.
The IRS View on this problem is HERE.

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