The worst has happened, you’re the victim of a tax scam. What do you do now? Here are the 3 most important tips for taxpayers for after you realize you were a victim of a scam:
- Report the theft to your local police department and the Federal Trade Commission (FTC). The FTC will provide you with an affidavit. Take this affidavit and a state-issued ID to your local police station and file a report for a stolen identity. The combination of the affidavit and the police report will serve as your Identity Theft Report and your official documentation for proving the theft.
- Put a Fraud Alert on your information by contacting one of the three major credit bureaus (Equifax, Experian, or Transunion). The agency you notify will contact the other two with the information. This will make it much more difficult for anyone to open an account in your name. You will receive a document from each agency notifying you a fraud alert has been placed on your name in the mail.
- Complete Form 14039, the Identity Theft Affidavit, and mail or fax the form to the IRS. This form will let the IRS know that you have been a victim of a scam and that it may have an affect on your current or future taxes. This way, the IRS is aware of your situation and can help determine your actual tax liability, and possibly help to alleviate some of your tax burden.
Being the victim of a tax scam and identity theft can be very scary. However, if you do fall victim, ensure that you act in a timely manner before more damage can be done. The good news is following these tips will help you to recover, and in most cases, avoid any long-term effects. Get started on resolving your situation with Nationwide Tax Solutions today.