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Business Tip
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Like individuals, businesses can be exposed to serious financial problems
By John H. Nardozzi, CPA, CVA
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danger to the financial well being of
thousands of Americans. Identity theft
occurs when someone uses your personal
information such as your name, Social
Security number (SSN), or other identifying
information, without your permission, to
commit fraud or other crimes.
Even a business can be exposed to
serious financial problems through the theft
of federal identification numbers, checking
account routing numbers, and corporate
FID number.
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Identity thieves have also been known
to use a legitimate taxpayer’s identity
(individual or corporate entity) to fraudu-
lently file a tax return and claim a refund.
Generally, the identity thief will use a stolen
ID number to file a forged tax return and
attempt to get a fraudulent refund early in
the filing season.
The criminals use Social Security
numbers of the living and even the recently
deceased. Scammers are also using tax-
payers’ stolen information to claimwinnings
such as lottery prizes and casino payouts,
and saddling the legitimate taxpayer with
paying the bill on the winnings.
In one of the latest identity scams,
crooks are sending out fake tax notices and
making phone calls to unsuspecting indi-
viduals and business owners. This is called
“phishing,” as the thieves are hoping to
“catch” someone unaware in order to steal
their data and their money.
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Be forewarned: The IRS never sends out
emails to taxpayers. Never! Another tip-off:
the IRS will never call you up to discuss
anything over the phone.
Be alert to possible identity theft if you
receive an IRS notice or letter that states that:
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or have had collection actions taken
against you for a year you did not file a
tax return;
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from an employer unknown to you;
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up with information you already have
on hand.
You may be unaware that any of this
has happened until you file your real return
later in the filing season and discover that
two returns have been filed using the same
Federal Identification Number. You’ll be
forced to spend time and money to try to
sort out the confusion.
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What should you do if your tax records
were affected by identity theft? If you receive
a legitimate notice from the IRS,
respond
immediately
. If you believe someone may
have used your tax identification number
fraudulently, notify the IRS immediately
by responding to the name and number
printed on the notice or letter.
If you become a victim of identity theft or
you believe you may be at risk due to a lost
or stolen purse or wallet, questionable credit
card activity, or unusual activity on your credit
report, contact the IRS Identity Protection
Specialized Unit. You can call them toll-free,
at 1-800-908-4490. You will need to fill out
the IRS Identity Theft Affidavit, Form 14039.
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Here are several ways to minimize the
chance of becoming an identity theft victim.
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any document(s) with your SSN on it.
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because they ask, provide it only when
required.
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financial information and tax returns.
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12 months.
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your home.
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passwords, firewalls, anti-spam/virus
software, updating security patches on
your electronic devices, and frequently
changing passwords for Internet
accounts.
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information over the phone, through
the mail, or over the Internet unless you
have initiated the contact or you are
sure you know the person or company
with whom you are dealing.
You can also report suspicious activity
to the IRS by calling 1-800-366-4484.
If you receive an electronic scam via email,
you can forward it to
for
investigation.
