The IRS announced yesterday that it will be opening offices in 180 locations across the country on Saturday, March 27, to provide taxpayers an opportunity to work directly with the IRS to resolve tax issues. A list of locations is provided on the IRS website.

Taxpayers who visit these “open houses” will most likely be working with the IRS to answer questions about tax credits, making payment arrangements, or other economic issues. Some, however, may need guidance on how to proceed if they know or suspect they are victims of identity theft.

Each year, a certain portion of the population experiences tax-related identity theft; according to a September 2009 U.S. Government Accountability Office (GAO) report, the IRS had cataloged over 50,000 incidents of identity theft through 2008 (the report stated that most of the cases occurred after 2005). The statistic is a little misleading because, according to the GAO, “limitations on the data mean that the data provides an incomplete picture of the amount of identity theft-related fraud occurring at the IRS.” Most likely, the number of incidents is much higher – there are certain types of identity theft that, because of current procedures, go completely undetected by the IRS.

The IRS is working to expand its identity theft initiatives – already in place is the Identity Protection Specialized Unit to help taxpayers who have previously been in contact with the IRS about an identity theft and have not achieved a resolution. Additionally, taxpayers can utilize Form 14039, the Identity Theft Affidavit, to alert the IRS if they believe they may be at risk due to an identity theft event but their tax records are not currently affected.

If you aren’t a victim, don’t assume it can’t happen to you, as tax season is a time of heightened risk. For instance, a plentiful crop of phishing scams pops up each year to lure taxpayers into providing sensitive personal information. To avoid these scams, keep in mind that the IRS never communicates or asks for personal information via email. Taxpayers should remember to stay vigilant, and utilize best practices for safeguarding information to avoid identity theft.

Tags: form 14039, GAO, identity protection specialized unit, IRS, tax fraud, taxpayer identity theft

Categories: Consumer ID Security, Data Security Issues.