10 Signs of Tax ID Theft That Are Major Red Flags  

Tax identity theft is a stealthy crime that can go undetected for months, leaving victims with significant financial and emotional burdens. As technology advances, so do the tactics used by criminals to exploit innocent individuals. To help, we delve into the world of tax ID theft and shed light on the top ten signs of tax ID theft. By understanding these warning signs, you can proactively protect yourself and safeguard your financial well-being. 

Here are the 10 leading signs of tax ID theft: 

1. Unexpected Rejection of Tax Return

When your tax return is rejected, it could indicate tax ID theft. This occurs when someone files a return using your Social Security number. Act swiftly to address the situation, protect your identity, and regain control of your tax filings. Stay proactive and informed to safeguard your financial well-being.

What to Do If Your Tax Return Is Rejected Unexpectedly

If your tax return is rejected, it may indicate tax ID theft. Immediately contact the IRS, file an Identity Theft Affidavit (Form 14039), secure your personal information, review credit reports for discrepancies, consider filing a paper return, and stay vigilant for further signs of fraud. Seeking professional assistance can provide guidance. Acting promptly is crucial to addressing the issue and protecting your financial security.

2. Unexplained Tax Account Activity

Discovering unexplained activity in your tax account can be a worrisome indication of potential tax ID theft. From unauthorized changes in filing status to unfamiliar transactions, such irregularities demand immediate attention.

What to do if Unexplained Tax Account Activity

If you notice unexplained activity in your tax account, take immediate action to protect your financial identity. Contact the IRS to report the situation, secure your account, review your tax records for discrepancies, file an Identity Theft Affidavit, monitor financial accounts and credit reports for unauthorized activity, stay vigilant for further signs of fraud, and seek professional assistance if needed. By being proactive and thorough, you can address unexplained tax account activity and mitigate the risks associated with tax ID theft.

3. Missing Refund

Discovering that your tax refund needs to be included can be a frustrating and concerning experience. It’s essential to take prompt action and determine the cause behind the missing refund to ensure that it doesn’t fall into the hands of scammers or result in potential errors.

What to Do If Your Refund Is Missing

When your tax refund goes missing, it’s important to investigate and resolve the issue quickly. Check the refund status, verify the payment method, contact the IRS if necessary, report the missing refund using Form 3911, and be cautious of potential scams. Seeking professional assistance can provide valuable guidance. Taking prompt and thorough action can increase the chances of recovering your refund and safeguard your financial interests.

4. The IRS informs you that someone filed a tax return in your name

Discovering a notification from the IRS before filing your taxes is a clear sign of identity theft and potential tax fraud. Scammers can exploit your personal information to file taxes in your name, claiming false income for larger refunds they can steal. This blog post helps you recognize warning signs, protect your finances, and prevent identity theft by understanding scammer tactics and implementing proactive measures.

What to do if the IRS notifies you that a tax return was filed under your name

If the IRS informs you that someone has filed a tax return in your name, taking immediate action is essential. Contact the IRS, complete the Identity Theft Affidavit (Form 14039), secure your personal information, obtain an Identity Protection PIN, report the incident to the FTC and credit bureaus, monitor your credit and financial accounts, keep detailed records, and seek professional assistance if needed. These steps will help protect your finances, restore your identity, and mitigate the impact of tax-related identity theft.

5. Your bank statements contain unfamiliar charges

Financial identity fraud is a serious threat to drain victims’ bank accounts. Recovering from such fraud can be a lengthy and challenging process. This blog article seeks to increase readers’ knowledge of the dangers of financial identity fraud, offer helpful advice on safeguarding your possessions, and provide guidance on dealing with the catastrophic effects. By staying vigilant and taking proactive measures, you can safeguard your finances and minimize the impact of identity theft.

What to Do If Your bank statements contain unfamiliar charges

If you notice unfamiliar charges on your bank statements, take immediate action. Contact your bank to report the unauthorized charges and initiate an investigation. Change passwords and PINs, monitor your accounts for further suspicious activity, and file a dispute to reverse the fraudulent charges potentially. Stay vigilant, update security measures, and consider checking your credit report for any additional signs of unauthorized activity.

6. New loans or credit cards in your name

Discovering that new loans or credit cards have been opened in your name without your knowledge is a distressing situation that points to the ominous reality of identity theft. This fraud can have far-reaching consequences, jeopardizing your financial well-being and creditworthiness. In an increasingly interconnected world, it is crucial to be vigilant and take immediate action to mitigate the impact of this deceptive act.

What to Do If New Loans or credit cards in your name

Take immediate action if you discover new loans or credit cards opened in your name. Contact the financial institution, freeze or close the accounts, file a police report, place fraud alerts with credit bureaus, and monitor your credit reports. Update passwords, keep records, and seek professional help if necessary. Swift action is crucial to mitigate the impact of identity theft and protect your credit.

7. Social Security Statement Discrepancies

Your Social Security Statement is an essential document that overviews your earnings history and estimates your future Social Security benefits. However, discovering discrepancies in this statement can cause concern, raising questions about the accuracy of your recorded earnings and potential impacts on your future benefits. It is crucial to promptly address these discrepancies to protect your Social Security benefits and ensure you receive the correct entitlements.

What to Do If Social Security Statement Discrepancies

If you find discrepancies in your Social Security statement, act promptly. Review the statement, contact the Social Security Administration, file an earnings correction if necessary, and monitor future statements. Keep records, protect your personal information, and seek professional assistance. These steps will help rectify errors and protect your entitlement to Social Security benefits.

8. Unexpected Tax Transcript Requests

Receiving unexpected requests for your tax transcripts can be a concerning and potentially alarming experience. These solicitations frequently come in the form of calls, emails, or text messages from what appear to be financial institutions or governmental organizations. However, it is important to understand that these requests could be a ruse to obtain your money and personal information for fraud.

What to Do If Unexpected Tax Transcript Requests

If you receive unexpected tax transcript requests, be cautious. Verify the source, avoid sharing personal information, report suspicious incidents, and protect your data. Stay informed, monitor your accounts, and raise awareness to prevent fraud. Safeguarding your personal information is crucial to avoiding identity theft and financial harm.

9. Unexpected Credit Report Changes

Discovering unexpected changes in your credit report can be a distressing experience, signaling potential identity theft or unauthorized activity on your accounts. Your credit report is a crucial tool lenders, landlords, and other financial institutions use to assess your creditworthiness. Any unexplained alterations to this report can seriously impact your financial 

well-being.

What to Do If Unexpected Credit Report Changes

If you notice unexpected changes in your credit report, take immediate action to protect yourself. Review your report, report discrepancies to the credit bureaus, contact the creditors involved and consider placing a fraud alert or credit freeze. File a police report if you suspect identity theft, monitor your credit regularly, update passwords, and keep detailed communication records. Seek professional assistance if needed. You can lessen the effects of fraud and protect your credit by doing the procedures listed below.

10. Suspicious Notifications from Financial Institutions

Receiving suspicious notifications from your financial institutions can cause concern and may indicate potential fraudulent activity targeting your accounts. Cybercriminals and scammers are developing new strategies to mislead people into disclosing personal information or granting them unlawful access to their assets. It is essential to be vigilant and knowledgeable about these tactics to protect yourself and your hard-earned money.

What to Do If Suspicious Notifications from Financial Institutions

If you receive suspicious notifications from financial institutions, verify their authenticity, be cautious of phishing attempts, contact the institution directly, review your accounts, update your security measures, and report fraudulent incidents. Stay proactive and informed to protect yourself from financial fraud. Learn more about phishing scams and how to avoid them. 

Bottom Line: Warning Signs of Tax ID Theft 

Being alert to the signs of tax identity theft is crucial for safeguarding your financial well-being. Whether it’s receiving IRS notifications, unfamiliar charges, new loans or credit cards, Social Security statement discrepancies, unexpected tax transcript requests, or other suspicious activity, taking immediate action is essential. Contact the relevant authorities, report fraud, place fraud alerts, file police reports, and monitor your accounts regularly. By staying proactive and informed, you can minimize the impact of tax identity theft and protect your financial stability.

Frequently Asked Questions (FAQs)