Identity Theft During Tax Season

I can think of many reasons why people dread tax season, especially those of us business owners who know it's not a matter of whether or not you owe, but how much. If that's not reason enough, identity theft can also be a problem during tax season. While most problems can be avoided by only working with a trustworthy, reputable accounting firm, trusting your personal financial information with yet another person is not the only identity theft problem you can face during tax season.

Tax season can also be the time of year when people discover that they've been victims of identity theft when the IRS lets them know they can only file once (that someone has reported income and possibly collected a refund in his or her name). This is what happened to one man who had his taxes done at Memphis branch of H&R Block. He received a call from H&R Block one morning saying that the IRS contacted them regarding his return. Apparently, someone filed using his name and Social Security number in New York.

This is not an isolated incident either. The IRS opened a special office last year to handle the identity theft cases involving tax returns. For more information, visit irs.gov or call (800) 908-4490.

Tax season is stressful no matter what, but finding out that you are an identity theft victim can turn it into a nightmare. If you are unfortunate enough to discover that you are among those hit by identity theft, be sure to immediately take the steps to report it. Only then can you stop the abuse of your name and finances and begin recovery.