Identity Theft and Your Refund Check

It's that time of year when our collective palms start to itch. There is no speculation about whether you will be getting some money because you already know the answer to that; and it's an emphatic yes.

For many of us to answer that way can only mean one thing: its tax time. No doubt that irregardless of the circumstances we are always during this time of year anxiously waiting for that refund check. Whether Federal or State or both, money is on the way and we already have it planned out what we are going to do with it.

This year the refund check takes on a lot more urgency. To say the economy is in the tank is a gross understatement. Thousands of people per month are losing their jobs or have been unable to find employment in spite of constant effort. More people are filing for unemployment benefits and those that already have it are facing dire straits because those benefits have run out or soon will.

Therefore while not a cure all, that refund check can be a big help to those of us who are up against it. This is all the more reason to take extra steps to ensure that it does arrive to you safe and sound.
If identity thieves get their way, you will not see any parts of that hard earned money.

After a three year decline, identity theft came back with a vengeance in 2008. According to Javelin Research, over nine million people in the US were the victims of identity theft last year; a twenty two percent increase from 2007.

While identity theft is a year round problem thanks to dumpster diving or just having your personal information get lost or stolen, the scams that arise during tax time definitely have a seasonal flavor.

One of them is the phone call. A scammer claims to be an IRS representative. They start telling you something is wrong with your tax return or that they need to confirm the correct address because they have another listing in their records. During the course of this inquiry, they may mention something about verifying your Social Security Number as well as other personal information. After the call it just comes down to rerouting your check.

If you need some kind of clarity as to whether the person on the phone is an impostor, just keep foremost in your mind the words of IRS spokesperson Jodie Reynolds. As she told Bowling Green Daily News, "We aren’t going to call you and ask for personal information. If you ever receive a phone call and you have any doubts in your mind at all about the legitimacy of the call, don’t give them any personal information."

That goes for any email correspondence you may receive. The IRS is never going to ask you to provide your personal information because they already have it. You have filed enough tax returns that by now they have clear indicators as to who you are. They have your social as well as your last valid street address. If they really need your personal information then all they need to do is ask one of the hundreds of government agencies that already have it on file.

If you are doing your own tax preparation this year, than take advantage of electronic filing. The IRS will have a list of a few of these processors online. If you are using a new tax preparer that suggested to you recently by a family member or coworker, check them out. It's not that you do not trust the people within your circle to make a good referral; it is however about your money and dealing with someone who for intent and purposes is a stranger to you. What are their credentials? How long have they been doing taxes?

Check around to see if their have been any complaints or even lingering questions. If not go for it but do not hand them your information and maintain a hands off approach. Keep track as much as possible, examine the final form that is to be filed and ensure you receive a copy for your records as well as all other documentation.

Tax refunds have taken on an added significance due to this financial crisis. The last thing you need right now is for an identity thief to add to your economic burden.

Article written by Daryl Campbell at Identity Theft and Fraud. Stealing your refund check is bad enough; unfortunately it is only the tip of the iceberg.