Sometimes, you might not know what’s happening when you encounter a tax fraud. You might realize it only after the Internal Revenue Service (IRS) sends you a mail or after you submit your tax return files.
More specifically, when a tax fraud happens, if you have already filed and are waiting for the refund information, you could receive a denial from the IRS saying that these taxes have already filed. It is because someone else has already stolen your information and filed it for a refund. But in some cases, you may even find yourself unable to file your tax return online. It is because the return has been filed in association with your Social Security number.
If you receive a letter from the IRS stating your refund information, while you are not sure whether it’s a real refund or a tax fraud, you need to contact the IRS directly. A letter from the IRS has distinguishing markers, including an official IRS seal, a notice or letter number, information about taxpayer’s rights, and a phone number to directly contact with the IRS. It’s a fraudulent letter if it is asking for cash, or check to be sent to any person or organization other than the US Treasury.
Therefore, when you suspect that you have encountered a tax fraud, you need to first contact the IRS for further information. Besides, file a police report. At the same time, you can contact the IRS’s Identity Protection unit by phone at 800-908-4490. You can also contact the credit bureaus and put a fraud alert on your credit report. It’s important that you take the actions above as soon as possible. The speed of your response to tax fraud could make a major difference.