Review Credit Reports Before Filing Taxes; Identity Theft can Cause you IRS Problems

With tax season around the corner, it's a great time to get copies of your credit reports- not only for reviewing various accounts listed that may or may not belong to you. But it's equally important to review your credit reports looking for any erroneous notations of prior or current employment history, inaccurate middle initials or name variations and/or an address discrepancy -all of which can tip you off to a possible identity theft.

An often overlooked type of identity theft referred to as employment identity theft occurs when someone uses your information to obtain work. This can happen when an undocumented worker comes into the country illegally and needs to find legitimate work. The first thing they need -is a Social Security Number. Once they have that, they can then find work under your name, get access to medical services, credit and even commit other crimes in your name.

Social Security Numbers are often sold in various underground websites frequented by criminals -and those seeking to buy data. These sites operate 24/7 buying, selling and trading our personal information such as SSN's, credit card info, bank account info, medical insurance data, passwords, account login info, debit card info, personal PIN's etc.

If you think it doesn't matter if someone else finds employment using your id, you would be wrong.

Because we need to pay taxes on all income reported to the IRS and oftentimes when the incomes reported are tallied up -you can be put into a different tax bracket and the IRS wants the additional taxes now owed. Though they are aware of identity theft issues such as this -it's still up to you to prove you didn't receive that additional income.

When checking your credit reports, make sure you dispute any erroneous notations for employment history. If you discover there are places of employment listed on your credit report that you never worked, dispute with the credit bureaus. If you later find out that someone has been working using your Social Security Number, notify the IRS and file a police report.
 
Here's a glimpse of what a single mom in Florida is going through after her identity was stolen by an illegal immigrant who paid $800. for the mom's identity.  Now, she can't get a job or a loan as she struggles to raise her young children.

Here's a bit of her story;




See this earlier blog for tips to avoid identity theft and watch a video that shows how easy it is for criminals to buy, sell and trade our information! If you learn you are a victim of identity theft -here are some steps you should take!