Tax-related identity theft occurs when someone uses a taxpayer’s stolen personal information, including his or her Social Security number, to file a tax return claiming a fraudulent refund.
If tax-related identity theft is suspected, the IRS will notify the taxpayer. Alternatively, practitioners may notice that identity theft might have occurred when they attempt to electronically submit a tax return and the submission fails due to a previously filed return under the client’s tax identification number.
Practitioners can help their clients