Frazier Deeter CPAs and Advisors

Atlanta

1230 Peachtree Street NE

Suite 1500

Atlanta, GA 30309

main 404.253.7500

Alpharetta

3480 Preston Ridge Road

Suite 375

Alpharetta, GA 30005

main 404.573.4200

Nashville

401 Commerce Street

Suite 920

Nashville, TN 37219

main 615.259.7600

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2801 W. Busch Boulevard

Tampa, FL 33618

813.874.1280

info@frazierdeeter.com

Tax ID Theft

It's the biggest and most prevalent tax scam happening right now - and the peak season is just around the corner. We're talking about tax identity theft and refund fraud.

This scam has become a big problem due primarily to its simplicity. Identity thieves steal their victims' sensitive personal information - primarily Social Security numbers and birth dates - and then file fake tax returns requesting refunds in their name. If thieves file bogus returns before victims files their legitimate tax returns, the IRS will usually send a refund check to the thief.

Victims, meanwhile, are left with the task of having to demonstrate to the IRS that the first return filed was fraudulent.  Doing so can take weeks or months and countless hours on the phone or at an IRS office. And until the problem is resolved, no legitimate refund check will be issued to the victim.

An Exploding Problem

Tax identity theft and refund fraud first surfaced in 2008, but the problem has exploded in recent years. It is estimated by the IRS that more than 3 million fraudulent tax refunds were sent to tax identity thieves last year alone, up from just 51,000 a few years ago. The total cost to taxpayers is estimated to be more than $5.2 billion.

Tax identity theft is now the largest category of identity theft complaints by far, according to the FTC. It accounted for 43% of all identity theft complaints in 2012, up from 15% in 2010.

One of the biggest challenges when it comes to dealing with tax identity theft is the fact that most people don't find out they are victims until it's too late. Typically, taxpayers get a notice from the IRS after they have filed informing them that a tax return they have already.

Frazier & Deeter has the tools to help you protect yourself again tax identity theft.  To find out more, watch our video.

 

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Frazier & Deeter, a Top 100 Largest CPA Firm in the United States, has accountants and business advisors who offer a full range of assurance and advisory services in the areas of audit, tax and management consulting and personal tax planning and compliance. As a leading accounting firm, we serve clients across the nation and internationally that include closely-held companies, SEC companies, and nonprofit entities. Headquartered in Atlanta, Georgia, we have been recognized as the 56th largest accounting firm in the nation, as one of the Top 25 Best Managed CPA firms in the country, and one of the Best Accounting Firms to Work for in the U.S.
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