Identity thieves do not content themselves with just taking out credit cards in their victims' names. No, they also often file fraudulent tax returns for refund checks to further benefit themselves. A new IRS policy should help victims figure out what happened.
Imagine receiving a letter from the IRS that the tax return you recently filed could not be processed because your tax return had already been filed - under your name and Social Security number. This is unfortunately an increasing problem for many people.
Identity thieves who are successful in obtaining some basic information about a person will rush to file a fraudulent tax return before the victim does in the hopes that the IRS will send a refund to the thief - in other words, it becomes a race to the Post Office. The victim then has a literal mess to sort out and needs to figure out what happened. This can be exceedingly difficult for the victim and even more difficult for those filing returns on the behalf of others, such as executors and guardians.
In the past, the IRS has not helped matters too much as the victim was not able to get a copy of the fraudulent tax return. However, as reported by the Wills, Trusts & Estates Prof Blog in "IRS Will Now Offer A Copy Of Fraudulently Filed Tax Returns To Identity Theft Victims," the IRS has finally changed its policy in handling these types of situations.
Now victims, or their authorized representatives, can get a copy of the fraudulent return, which should help in figuring out what happened. The fraudulent return will of course be redacted, pursuant to federal privacy laws, but not to an extent that would make viewing the return worthless.
Of course, if you are a victim of this tax scam, you should not attempt to handle it on your own, especially if you are an executor or guardian. Seek the services of a professional who is well experienced in these type of matters to make sure that you are doing things correctly. Unfortunately, this can become a very time oppressive endeavor.
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Reference: Wills, Trusts & Estates Prof Blog (Nov. 30, 2015) "IRS Will Now Offer A Copy Of Fraudulently Filed Tax Returns To Identity Theft Victims"