Identity Theft - Deloitte
Identity theftLook again at how you safeguard your personal financialinformation. While the IRS has made solid strides towardreducing the number of individual and entity identity theftinstances, you still need to remain vigilant about yourpersonally identifiable information. In 2018, you shouldalso be prepared for the IRS to be inquiring about newinformation to assist it in verifying your true identity. Yourtax adviser can help you take another look at how to guardyourself from identity theft or how to respond if it occurs.Back602018 essential tax and wealth planning guide Forward
Identity theftHow toprotect yourselfHow to protect yourselfIRS initiatives toprevent identity theftIdentity theft at theentity levelThe IRS does not initiate contact with taxpayers by phone or email torequest personal or financial information. This includes any type of electroniccommunication, such as text messages and social media channels.Personal tax-related identity theftAll too often in recent years, a taxpayer goes tofile an individual income tax return and finds that,unbeknownst to him or her, a return has alreadybeen filed on the taxpayer’s behalf. Tax-relatedidentity theft occurs when someone uses yourpersonal information, such as your name, SocialSecurity number (SSN), or other information,without your permission to file a tax return claiminga fraudulent refund. All income levels of the USpopulation have experienced tax-related identitytheft. It is typically discovered when you attemptto e-file and learn that a tax return has alreadybeen filed with your SSN. This erroneous filingcan affect your income tax filing obligations oravailable credits. It also leaves you open for furtherfraudulent use of your SSN.If you believe you are a victim of tax-related identitytheft, you should contact the IRS immediately. Ifyou are unsure and would like someone to assistwith determining if you have been a victim, then youcould also contact your tax adviser. Your adviser canuse Form 2848, Power of Attorney and Declarationof Representative, to secure IRS transcripts of youraccount to determine if the fraudulent return hasbeen processed. If you are a victim, then you shouldfile and submit Form 14039, Identity Theft Affidavit,to the IRS. After receipt of Form 14039 by the IRS,it will be subject to an accuracy review. If acceptedand processed by the IRS, the IRS will send you aCP01A Notice with an Identity Protection PersonalIdentification Number (IP PIN).Your IP PIN can be used when filing electronic orpaper returns. If you do not use your IP PIN, thenyour electronic return will be rejected and yourpaper return will be subject to additional screeningsto validate your identity, which will delay yourrefund (if applicable). Each IP PIN can be used onlyonce. Thereafter, a distinct IP PIN will be issuedsystematically on an annual basis in December.Even if you are a victim, you still must continue topay your taxes and file your tax returns, even if youmust do so by paper. The IP PIN will eliminate anydelay in processing the valid tax returns.Additionally, if you have been subject to identitytheft, there are other steps that you can take toprotect yourself. You should contact any respectivestate tax agencies, file a report with local lawenforcement, and file a complaint with the FederalTrade Commission (www.ftc.gov/complaint). Ingeneral, you should contact one of the three majorcredit bureaus to place a “fraud alert” on yourcredit records and monitor your credit reports. Ifany of your financial accounts have been affected,then you should contact the financial institutionsand close them. It is also a good idea to checkyour Social Security Administration earningsstatement annually to reconcile your earningswith what was reported.Back612018 essential tax and wealth planning guide Forward
Identity theftHow toprotect yourselfHow to protect yourselfIRS initiatives toprevent identity theftIdentity theft at theentity levelWarning signs for individualsYou owe additional tax, refund offset,or have collection actions against youfor a year you did not file a tax returnYou receive an unexpected tax transcriptor IRS notice that does not correspondto anything submitted by youIRS records indicate that you receivedwages from an employer unknown to youYou are impacted by a data breach (forexample, improper disposal of personallyidentifiable information in the trash or asophisticated cyberattack on corporatecomputers by criminals)High risk: data breach of SSN and financialdata (such as wage information)Low risk: credit card numbers, health recordswithout SSNs, driver’s license numbersHow to mitigate your individual riskDo not give a business your SSN just becauseit asks; only provide this information whenabsolutely necessaryCheck your credit report annuallyCheck your Social Security Administrationearnings statement annuallyProtect your personal computers by usingfirewalls and anti-spam/virus software,updating security patches, and changingpasswords for Internet accountsDo not give personal information over thephone, through the mail, or via the Internetunless you have either initiated the contactor are sure you know who is askingChange all financial account and emailpasswords on a regular basisYou lost a cell phoneYour mail was stolenYou receive confirmation of a change ofaddress when your address did not changeBack622018 essential tax and wealth planning guide Forward
Identity theftIRS initiatives to prevent identity theftHow toprotect yourselfIRS initiatives toprevent identity theftIdentity theft at theentity levelIRS’s new initiatives to stop individualtax-related identity theftThe IRS does not initiate contact with taxpayersby phone or email to request personal or financialinformation. To reinforce that fact, the IRS startedan education series called “Don’t Take the Bait,”which focuses on vigilance toward computersecurity and warns about email scams dubbed“spear phishing” in which senders identifythemselves as a friend, customer, or company.You should not respond to the IRS via any typeof electronic communication, such as text messagesand social media channels. Also, remember thatthe IRS does not call taxpayers with threats oflawsuits or arrests.In 2018, there will be a new verification code box onall official Forms W-2. Piloted in 2017, the verificationcode is a 16-digit alphanumeric code that taxpayersand tax preparers enter when prompted by theirsoftware product. The objective is to verify theinformation at the point of filing and preventfraudsters from using fake Forms W-2 to createfraudulent refunds. Both the IRS and the states willreceive several new data elements from individualreturns that will help improve authentication of thetaxpayer and identify possible identity theft scams.If you change your address, then you should expectthe IRS to send a change of address letter to boththe new address and the old address.You may also have noticed in 2017 that the IRS and/or state tax agencies asked for your driver’s licensenumber or a state-issued identification number.This information is optional for most state taxreturns, but a few states do require it to completethe electronic filing process. It is also optional fora federal tax return. However, providing theseidentification numbers helps the IRS verify youridentity, which can prevent unnecessary delaysin tax return processing.Back632018 essential tax and wealth planning guide Forward
Identity theftIRS initiatives to prevent identity theftHow toprotect yourselfIRS initiatives toprevent identity theftIdentity theft at theentity levelMaking progress against individual identity theft returnsDecreased incidences of reported and confirmed individual identity theft returnsReported identity thefts (IRS)Institutions taking actionIRS2016376,00046%from 20152017 (Jan.–Aug.)189,00040%from 2016(Jan.–Aug.)20162017 (Jan.–Aug.)883,000stoppedconfirmed identity theft returns443,000stoppedconfirmed identity theft returns37%30%from 2016(Jan.–Aug.)from 2015Financial institutions2016124,000stoppedsuspect refunds2017 (Jan.–Aug.)127,000stoppedsuspect refunds to-dateBack642018 essential tax and wealth planning guide Forward
Identity theftIdentity theft at the entity levelHow toprotect yourselfIRS initiatives toprevent identity theftIdentity theft at theentity levelIdentity theft at the entity levelThe IRS has expanded its efforts to better protectpass-through and corporate entity filers andidentify suspected identity theft returns. Thisincludes C and S corporations, partnerships,estates, and trusts. For example, if a corporationor pass-through entity files Form 4466, CorporationApplication for Quick Refund of Overpaymentof Estimated Tax, the IRS will ask for confirmationof the filing before issuing the refund. It isalso common for entity taxpayers to receivea notice confirming the responsible party forthe corporation. If an estate or trust receivessuch a notice, it is to confirm the trustee as aresponsible party.Common business scamsIdentity theft perpetrators often attempt tosteal employee Forms W-2 or business employeridentification numbers (EINs) to create fakeForms W-2 or 1099s. This data is then used tofile fraudulent individual return filings seekingrefunds. Information on reporting such scamsis available in the IRS publication Form W-2/SSNData Theft: Information for Businesses and PayrollService Providers. The perpetrators may also useSchedule K-1 data to file fraudulent individualreturns on behalf of shareholders, partners, orbeneficiaries. Additionally, there has been anincrease in fraudulent trust and estate return filings,including both on behalf of existing entities andthose established using stolen individual taxpayerinformation. All entities should be certain to protecttheir computers and data to guard against identitytheft and refund fraud.652018 essential tax and wealth planning guide IRS initiatives to prevent entity identity theftPerson The name and SSN of thesigning thecompany executive authorized toreturnsign the corporate tax return.Paymenthistory Is this person authorized to signthe return?Were estimated tax paymentsmade? If so: When? How?Parentcompanyinformation How much?Is there a parent company? Name, EIN, address of parentcompany.Filing history Has the business filed: Form 940? Form 941? Other business-related tax forms?Additional information may be requestedbased on deductions claimed.Warning signs for entitiesAs with fraudulent individual returns, there arecertain warning signs that may indicate entityidentity theft. Business, partnerships, and estateand trust filers should be alert to potential identitytheft and contact the IRS if they experience anyof these issues: An extension to file request is rejected becausea return with the EIN or SSN is already on file An e-filed return is rejected because a duplicateEIN/SSN is already on file with the IRS Failure to receive expected and routinecorrespondence from the IRS, which mayindicate a criminal has changed the addressLook again at how you safeguard yourpersonal financial informationWhile the IRS has made solid strides towardreducing the number of individual and entityidentity theft instances, you still need to remainvigilant about your personally identifiableinformation. In 2018, you should also be preparedfor the IRS to be inquiring about new informationto assist it in verifying your true identity. Your taxadviser can help you take another look at howto guard yourself from identity theft or respondif it occurs.BackForward
ResourcesPrivate wealthDeloitte Private WealthPrivate Wealth brochureTax reformTax Reform insightsTax News & Views: Capitol Hill briefingIndividual income tax planningPrivate wealth tax controversies: Deep experience navigating interactions with taxing authoritiesWealth transfer planningWealth planning: Securing your legacyUS estate and gift taxation of resident aliens and nonresident aliensPhilanthropyPrivate foundations: Establishing a vehicle for your charitable visionIdentity theftIRS Identity Protection Specialized Unit: 1 800 908 4490IRS.gov, Identity Protection: Prevention, Detection and Victim AssistanceIRS.gov, Taxpayer Guide to Identity TheftIRS.gov, Identity Theft Guide for Business, Partnerships and Estate and TrustsHelpful resources: Publications, articles, YouTube videos and other identity theft related outreachIRS.gov, Tax Scams / Consumer AlertsIRS.gov, IRS Publication 5027, Identity Theft Information for TaxpayersFederal Trade Commission: Consumer Information, Identity TheftBack662018 essential tax and wealth planning guide Forward
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fraudsters from using fake Forms W-2 to create fraudulent refunds. Both the IRS and the states will receive several new data elements from individual returns that will help improve authentication of the taxpayer and identify possible identity theft scams. How to protect yourself IRS initiatives to prevent identity theft Identity theft at the
identity theft we have seen or believe to be likely. ased on these reviews and our review of the FT 's identity theft rules and its suggested responses to mitigate identity theft, as well as other sources, we have developed our procedures below to respond to detected identity theft Red Flags. Procedures to Prevent and Mitigate Identity Theft
IDENTITY THEFT If you are a victim of identity theft, or you suspect that someone is using your name . and your notarized ID Theft Affidavit (located at the back of this kit). Identity theft is a Class D Felony under KRS 514.160. Theft related to credit or debit cards is a Class A Misdemeanor or Class D Felony under KRS 434.550 - 434.730. 2 .
Jan 19, 2016 · Identity theft is using the identifying information of another person. Identity theft can be in the form of financial identity theft or medical identity theft. Medical identity theft occurs when someone uses another person’s name or other parts of anot
Identity Theft Unit in response to increased identity theft incidents reported by Indiana citi-zens and to enhance existing efforts to educate Hoosiers about protecting their identities. The Identity Theft Unit assists ID theft victims and provides investigative services to help promote the prosecution of identity thieves.
Scope of the ID Theft Problem In 2014: 17.6 million people were victims of identity theft Up from 8.1 million in 2010 The ID theft fraud amount was 18 billion Down from all time high of 48 billion in 2010 Every 2 seconds there is a new identity fraud victim To correct ID theft and restore credit, victims spent .
provides tips, tools, and resources to empower individuals to prevent identity theft and manage the identity recovery process if fraud occurs. 25,000 Identity Theft Insurance Policy Underwritten by AIG, the 25,000 Identity Theft Insurance policy provides reimbursement for out of pocket costs such as:
IDENTITY THEFT If you are a victim of identity theft, or you suspect that someone is using your name . and your notarized ID Theft Affidavit (located at the back of this kit). Identity theft is a Class D Felony under KRS 514.160. Theft related to credit or debit cards is a Class A Misdemeanor or Class D Felony under KRS 434.550 - 434.730. 2 .
López Austin, Alfredo, “El núcleo duro, la cosmovisión y la tradición mesoamericana”, en . Cosmovisión, ritual e identidad de los pueblos indígenas de México, Johanna Broda y Féliz Báez-Jorge (coords.), México, Consejo Nacional para la Cultura y las Artes y Fondo de Cultura Económica, 2001, p. 47-65. López Austin, Alfredo, Breve historia de la tradición religiosa mesoamericana .
