Protection and Reporting of Tax Refund Fraud

Last updated on July 21, 2023

Identity theft is one the most widespread tax scams in the country. Every year, thousands of taxpayers learn their identities have been stolen to carry out tax and financial crimes. In the case of a tax refund fraud, taxpayers usually realize that their identity has been stolen once they go to file a tax return. They quickly discover that two returns have been filed using the same Social Security Number.

According to the IRS, you may be a victim of identity theft if you receive an IRS notice or letter that informs you that:

• More than one tax return for you was filed,
• You have a balance due, refund offset or have had collection actions taken against you for a year you did not file a tax return, or
• IRS records indicate you received wages from an employer unknown to you.

If you believe your identity has been stolen, even if you cannot confirm it, you must report it to the IRS at the Identity Protection Specialized Unit’s toll-free number: 1-800-908-4490. The IRS will take the necessary steps to secure your account. You may be at risk for identity theft if you’ve lost your wallet/purse or experience unusual credit card activity, etc. Contact the IRS immediately in such a case.