Identity theft tax return delay

ID Theft Affidavit : Will Filing It Delay My Tax Refund ? By completing the ID theft affidavit , you are advising the IRS that your information has been. The IRS says that it resolves tax identity theft cases in 1to 1days , depending on your circumstances. But in many instances, victims of complex tax identity theft have experienced resolution times of more than one year.

Even if you sail through the verification process, it may take up to nine weeks to get your refund , according to the letter Henry received. A taxpayer ’s SSN can be stolen through a data breach, a computer hack or a lost wallet. Tax season is also tax refund identity theft season. As you work this time of year to gather documents and prepare your legitimate tax return , identity thieves, too, are at work—trying to beat you and other filers to the punch. Over the last few years, identity theft related to taxes has exploded.

In order to reduce possible losses from identity theft , Congress passed a law that forces the IRS to delay issuing refunds for people claiming certain deductions (the ones most likely used by identity thieves ). Part of this law includes a section that requires the IRS to withhold tax refunds for taxpayers who file a tax return claiming either the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC). In past years, about of filers receives refunds after filing their federal income tax returns. Many people even count on a refund to help them pay down debt or cover bills early in the year. The IRS has significantly streamlined the identity theft processing program.

A couple of years ago, delays in excess of a year were not at all unheard of. I personally know of two that were resolved in about months this year when the. The agency says it has strengthened the. Once it is, the IRS will give you an IP PIN that you use to file next year.

That will significantly expedite matters going forward. In response to the increasing tax -related identity theft problem, the Internal Revenue Service (IRS) is monitoring tax returns for signs of fraudulent activity. The most frequent scam is when thieves use a person’s name and Social Security number to file a fraudulent return and steal a tax refund. An incorrect or missing IP PIN will result in the rejection of your e-filed return or a delay of your paper return until it can be verified. Do not reveal your IP PIN to anyone.

This PIN adds an extra level of security when you or someone else tries to file a tax return in your name. Unfortunately, it appears that an increasing number of taxpayers have been subjected to verification requirements implemented by the IRS as part of these security safeguards. In Michigan, taxpayers also can. You could experience a delay receiving your tax refund from the federal government or if you live in one of a handful of states.

However, if you identity was compromised but it was not used on a fraudulent tax return , check Box in Section A (you can also check this box if you had any personal belongings or Social Security cards stolen). The majority of those returns turned out to be filed correctly, but the process delayed returns weeks or months. IRS identity theft filters sometimes delay returns and tax refunds until taxpayers verify their identities. Fraud Filter The report said nearly 1. A new IP PIN is generated for each filing season and can be retrieved starting in mid-January of each year by logging into the account you create. We Have Almost Everything on eBay.

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