Columbia, SC (October 8, 2013) — Eligible South Carolina taxpayers can sign up and receive state-provided identity protection coverage through CSID, at www.scidprotection.com or 855-880-2743, beginning October 24, 2013. The deadline to enroll is October 1, 2014.
Until CSID enrollment is open, taxpayers are encouraged to visit www.scidprotection.com for more information about the services provided. Additionally, taxpayers have the option to contact CSID now at 855-880-2743 for more information or for a representative to call the individual back for enrollment when it becomes available.
CSID, the leading provider of global, enterprise-level identity protection and fraud detection technologies and solutions, was selected to assist South Carolina taxpayers whose personal identifying information was potentially compromised during the Department of Revenue security breach in 2012.
“I applaud the state Budget and Control Board for selecting a vendor whose services offer comprehensive identity protection solutions for not only South Carolina individuals, but businesses as well. CSID’s services provide a range of credit and identity monitoring proven to cover potential identity theft, and we hope that all eligible taxpayers will take advantage of the state-provided service through CSID,” said DOR Director Bill Blume.
CSID’s identity protection is a comprehensive service to ensure the protection of an identity through credit and other identity monitoring. These services include credit monitoring from TransUnion, online black market internet surveillance, monitoring of court records and pay day loans, change of address alerts, as well as a Social Security number trace, sex offender monitoring, identity theft insurance and identity restoration.
Minor dependents, adult dependents, and businesses are also eligible for CSID enrollment beginning October 24, 2013.
“Data breaches continue to grow in frequency and severity of impact to both organizations and affected individuals,” said Joe Ross, president of CSID. “CSID offers a comprehensive array of identity protection solutions and services to assist in the mitigation of a data breach event. Our coverage will not only provide incremental identity theft protection for the impacted citizens of South Carolina, but we are also able to offer these services at a price that is cost-effective to the state.”
For more information or a list of frequently asked questions, please visit the DOR website at www.sctax.org/security.
For more information, contact:
CSID
855-880-2743
Helen Murphy
INK Public Relations for CSID
512-382-8988
Columbia, SC (October 4, 2013) — The South Carolina Budget and Control Board today announced that CSID, a leading provider of global enterprise-level identity protection and fraud detection technologies and solutions, has received the award to assist South Carolina taxpayers whose personal information was compromised during the 2012 Department of Revenue (DOR) security breach.
Eligible taxpayers will be able to enroll either online or over the phone with CSID’s state-provided identity protection coverage by no later than October 24, 2013. The deadline to enroll is October 1, 2014.
“I applaud the state Budget and Control Board for selecting a vendor whose services offer comprehensive identity protection solutions for not only South Carolina individuals, but businesses as well. CSID’s services provide a range of credit and identity monitoring proven to cover potential identity theft, and we hope that all eligible taxpayers will take advantage of the state-provided service through CSID,” said DOR Director Bill Blume.
In addition to comprehensive credit bureau monitoring, CSID offers specialized identity monitoring of events such as surveillance of internet and other media for use of personal identifying information. Black market identity monitoring provides internet surveillance to alert individuals if their identity has been stolen, allowing time to remediate before a fraudulent event can occur. If needed, CSID’s Identity Theft Restoration Services will restore the individual’s identity to a pre-compromised state and is available to all eligible individuals even if they have not enrolled with CSID.
Minor dependents, adult dependents, and businesses will be eligible for CSID enrollment no later than October 24, 2013.
In the coming weeks, CSID will launch an enrollment outreach plan to educate the taxpayers of South Carolina on the state-provided services available.
“Data breaches continue to grow in frequency and severity of impact to both organizations and affected individuals,” said Joe Ross, president of CSID. “CSID offers a comprehensive array of identity protection solutions and services to assist in the mitigation of a data breach event. Our coverage will not only provide incremental identity theft protection for the impacted citizens of South Carolina, but we are also able to offer these services at a price that is cost-effective to the state.”
For more information or a list of frequently asked questions, please visit the DOR website at www.sctax.org/security.
For more information, contact:
Helen Murphy
INK Public Relations for CSID
512.382.8988
Columbia, SC (September 23, 2013) — Budget and Control Board Director Marcia Adams today announced that after a competitive bid process, CSIdentity Corporation (CSID) has been awarded a contract to provide an additional year of free credit protection for eligible individuals.
Individuals whose information was potentially compromised in the Department of Revenue (DOR) security breach will be able to enroll in the credit protection and identity monitoring services provided by CSID on October 24, 2013. DOR and CSID will provide more details on the enrollment process in the upcoming weeks.
In addition to comprehensive credit bureau monitoring, CSID offers specialized identity monitoring of events such as surveillance of internet and other media for use of personal identifying information. Black market identity monitoring provides internet surveillance to alert individuals if their identity has been stolen, allowing time to remediate before a fraudulent event can occur. If needed, CSID’s Identity Theft Restoration Services will restore the individual’s identity to a pre-compromised state and is available to all eligible individuals even if they have not enrolled with CSID.
DOR Director Bill Blume stated, “As an agency, the Department of Revenue has taken precautions to ensure the data entrusted to us is processed in a safe and secure environment. We encourage all eligible individuals to continue to protect their personal identifying information by enrolling with CSID. In a world where technology is ever-evolving, CSID offers more than credit protection services by providing the added protection of identity theft monitoring and credit restoration to best protect the citizens of South Carolina.”
Credit and identity theft protection will be available for those eligible including minor dependents, adult dependents, and those with no credit history. Protection for eligible businesses will also be available through CSID.
Credit protection services provided by CSID will end on October 31, 2014, unless the state chooses to extend the CSID contract. Individuals who enrolled with Experian are still covered for one year from the date of their enrollment, and can enroll in CSID’s credit protection service while still enrolled with Experian.
CSID Background:
Headquartered in Austin, TX, CSID is the leading provider of global identity protection and fraud detection technologies for businesses, their employees and consumers.
PUBLIC NOTICE
Columbia, SC (September 17, 2013) — Taxpayers are encouraged to be patient in making a decision about the continued credit monitoring services offered by any vendor, including Experian, until they have an opportunity to evaluate the services the state will cover and soon make available.
The state Budget and Control Board is in the process of reviewing bids and a formal announcement will be made next week as to which vendor was chosen to offer credit and identification protection. The vendor will work alongside the state of South Carolina to promote and educate the public on the protection service.
The final details of the state provided protection service will be in place by October 24, 2013, prior to any taxpayer coverage lapsing.
DOR Director Bill Blume stated, “It is our goal to protect the private information of South Carolina citizens, and we want to ensure that individuals are aware of the state provided credit and identity theft protection available for a second year.”
Individuals are still covered through Experian for one year from their date of enrollment. In addition, those citizens who choose to purchase their own protection have the ability to deduct a portion of that cost from their state income taxes.
Experian credit protection will expire for South Carolina taxpayers 12 months from their initial enrollment date.
Individuals can visit www.sctax.org to stay up to date on the latest information available on credit protection for South Carolina taxpayers.
September 8, 2013
Are you thinking about taxes while you’re enjoying the warm summer months? Not likely! But the IRS wants you to know that scammers ARE thinking about taxes and ways to dupe you out of your money.
Tax scams can happen anytime of the year, not just during tax season. Three common year-round scams are identity theft, phishing and return preparer fraud. These schemes are on the top of the IRS’s “Dirty Dozen” list of scams this year. They’re illegal and can lead to significant penalties and interest, even criminal prosecution.
Here’s more information about these scams that every taxpayer should know.
1. Identity Theft. Tax fraud by identity theft tops this year’s Dirty Dozen list. Identity thieves use personal information, such as your name, Social Security number or other identifying information without your permission to commit fraud or other crimes. An identity thief may also use another person’s identity to fraudulently file a tax return and claim a refund.
The IRS has a special identity protection page on IRS.gov dedicated to identity theft issues. It has helpful links to information, such as how victims can contact the IRS Identity Theft Protection Specialized Unit, and how you can protect yourself against identity theft.
2. Phishing. Scam artists use phishing to trick unsuspecting victims into revealing personal or financial information. Phishing scammers may pose as the IRS and send bogus emails, set up phony websites or make phone calls. These contacts usually offer a fictitious refund or threaten an audit or investigation to lure victims into revealing personal information. Phishers then use the information they obtain to steal the victim’s identity, access their bank accounts and credit cards or apply for loans. The IRS does not initiate contact with taxpayers by email to request personal or financial information. Please forward suspicious scams to the IRS at phishing@irs.gov. You can also visit IRS.gov and select the link “Reporting Phishing” at the bottom of the page.
3. Return Preparer Fraud. Most tax professionals file honest and accurate returns for their clients. However, some dishonest tax return preparers skim a portion of the client’s refund or charge inflated fees for tax preparation. Some try to attract new clients by promising refunds that are too good to be true.
Choose carefully when hiring an individual or firm to prepare your return. All paid tax preparers must sign the return they prepare and enter their IRS Preparer Tax Identification Number (PTIN). The IRS created a webpage to assist taxpayers when choosing a tax preparer. It includes red flags to look for and information on how and when to make a complaint. Visit www.irs.gov/chooseataxpro.
For the full list of 2013 Dirty Dozen tax scams, or to find out how to report suspected tax fraud, visit IRS.gov.
The IRS’s annual ‘Dirty Dozen’ list includes common tax scams that often peak during the tax filing season. The IRS recommends that taxpayers be aware so they can protect themselves against claims that sound too good to be true. Taxpayers who buy into illegal tax scams can end up facing significant penalties and interest and even criminal prosecution.
The tax scams that made the Dirty Dozen list this filing season are:
Identity Theft. Tax fraud through the use of identity theft tops this year’s Dirty Dozen list. Combating identity theft and refund fraud is a top priority for the IRS. The IRS’s ID theft strategy focuses on prevention, detection and victim assistance. During 2012, the IRS protected $20 billion of fraudulent refunds, including those related to identity theft. This compares to $14 billion in 2011. Taxpayers who believe they are at risk of identity theft due to lost or stolen personal information should immediately contact the IRS so the agency can take action to secure their tax account. If you have received a notice from the IRS, call the phone number on the notice. You may also call the IRS’s Identity Protection Specialized Unit at 800-908-4490. Find more information on the identity protection page on IRS.gov.
Phishing. Phishing typically involves an unsolicited email or a fake website that seems legitimate but lures victims into providing personal and financial information. Once scammers obtain that information, they can commit identity theft or financial theft. The IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels. If you receive an unsolicited email that appears to be from the IRS, send it to phishing@irs.gov.
Return Preparer Fraud. Although most return preparers are reputable and provide good service, you should choose carefully when hiring someone to prepare your tax return. Only use a preparer who signs the return they prepare for you and enters their IRS Preparer Tax Identification Number (PTIN). For tips about choosing a preparer, visit www.irs.gov/chooseataxpro.
Hiding Income Offshore. One form of tax evasion is hiding income in offshore accounts. This includes using debit cards, credit cards or wire transfers to access those funds. While there are legitimate reasons for maintaining financial accounts abroad, there are reporting requirements taxpayers need to fulfill. Failing to comply can lead to penalties or criminal prosecution. Visit IRS.gov for more information on the Voluntary Disclosure Program.
“Free Money” from the IRS & Tax Scams Involving Social Security. Beware of scammers who prey on people with low income, the elderly and church members around the country. Scammers use flyers and ads with bogus promises of refunds that don’t exist. The schemes target people who have little or no income and normally don’t have to file a tax return. In some cases, a victim may be due a legitimate tax credit or refund but scammers fraudulently inflate income or use other false information to file a return to obtain a larger refund. By the time people find out the IRS has rejected their claim, the promoters are long gone.
Impersonation of Charitable Organizations. Following major disasters, it’s common for scam artists to impersonate charities to get money or personal information from well-intentioned people. They may even directly contact disaster victims and claim to be working for or on behalf of the IRS to help the victims file casualty loss claims and get tax refunds. Taxpayers need to be sure they donate to recognized charities.
False/Inflated Income and Expenses. Falsely claiming income you did not earn or expenses you did not pay in order to get larger refundable tax credits is tax fraud. This includes false claims for the Earned Income Tax Credit. In many cases the taxpayer ends up repaying the refund, including penalties and interest. In some cases the taxpayer faces criminal prosecution. In one particular scam, taxpayers file excessive claims for the fuel tax credit. Fraud involving the fuel tax credit is a frivolous claim and can result in a penalty of $5,000.
False Form 1099 Refund Claims. In this scam, the perpetrator files a fake information return, such as a Form 1099-OID, to justify a false refund claim.
Frivolous Arguments. Promoters of frivolous schemes advise taxpayers to make unreasonable and outlandish claims to avoid paying the taxes they owe. These are false arguments that the courts have consistently thrown out. While taxpayers have the right to contest their tax liabilities in court, no one has the right to disobey the law.
Falsely Claiming Zero Wages. Filing a phony information return is an illegal way to lower the amount of taxes an individual owes. Typically, scammers use a Form 4852 (Substitute Form W-2) or a “corrected” Form 1099 to improperly reduce taxable income to zero. Filing this type of return can result in a $5,000 penalty.
Disguised Corporate Ownership. Scammers improperly use third parties form corporations that hide the true ownership of the business. They help dishonest individuals underreport income, claim fake deductions and avoid filing tax returns. They also facilitate money laundering and other financial crimes.
Misuse of Trusts. There are legitimate uses of trusts in tax and estate planning. But some questionable transactions promise to reduce the amount of income that is subject to tax, offer deductions for personal expenses and reduced estate or gift taxes. Such trusts rarely deliver the promised tax benefits. They primarily help avoid taxes and hide assets from creditors, including the IRS.
For more on the Dirty Dozen, contact Tax On Wheels, LLC at 803 732-4288 and see IRS news release IR-2013-33.
Additional IRS Resources:
Columbia, SC (March 14, 2013) — The March 31, 2013 deadline to enroll with Experian’s ProtectMyID credit monitoring service is fast approaching and the SC Department of Revenue (DOR) is reminding taxpayers to sign up either online or by phone for the one-year, free service.
Individuals who have not already enrolled with ProtectMyID are urged to do so before the March 31, 2013 deadline by visiting www.protectmyid.com/scdor and entering the code “SCDOR123” or by calling 1-866-578-5422, if you do not have internet access. “We encourage consumers to take advantage of all of the free tools available to mitigate the effects of the DOR breach,” said Carrie Grube Lybarker, Administrator of the SC Department of Consumer Affairs.
ProtectMyID is designed to detect, protect and resolve potential identity theft, and includes daily monitoring of all three credit bureaus. With the complimentary one-year enrollment, individuals will be alerted to any changes to his or her credit file, and will also have access to fraud resolution agents beyond the enrollment period.
The ProtectMyID one-year enrollment includes:
According to DOR Director Bill Blume, “With approximately 1.3 million individuals currently enrolled with Experian’s ProtectMyID, DOR continues to encourage all South Carolina taxpayers to sign up before the March 31 deadline, and those who have already enrolled are urged to advise family members and friends to enroll as well. ProtectMyID is offered as a free service to best monitor their credit files. The representatives with both the Department of Consumer Affairs and ProtectMyID are proven partners with DOR and are willing to assist all taxpayers.”
Upon enrollment with ProtectMyID, taxpayers who claim minors as dependents should receive notification from Experian by email or letter with instructions on how to sign up minors for Experian’s Family Secure plan. The enrollment deadline for Family Secure is May 31, 2013.
For more information on protecting yourself against identity theft, visit the Department of Consumer Affair’s website at www.consumer.sc.gov or call 1-800-922-1594. Information related to the security breach can be found on DOR’s website at www.sctax.org.
You may also contact Tax On Wheels, LLC at 803 732-4288 if you need assistance with Identity Theft issues surrounding your tax returns.
A study on credit report accuracy recently found that 1 in 5 of the participating consumers had an error on at least one of their three credit reports.
Why Do Credit Report Errors Matter?
Errors on your credit report can negatively affect your credit score, which is used to evaluate your applications for credit cards, loans, jobs, housing, insurance, and more.
What Can You Do?
Check Your Credit Report
Check your credit report with all three credit reporting agencies at least once a year (you are entitled to one FREE credit report annually from each agency (Experian, TransUnion, and Equifax)). Checking your report will help you 1) identify and correct errors that could be affecting your credit score, and 2) protect yourself from identity theft.
Dispute Errors
If you find an error on any of your credit reports, follow instructions on the report that explain how to dispute errors. If errors have not been corrected after you’ve disputed them with the credit reporting agency, you can file a complaint with the Consumer Financial Protection Bureau. Get more information about disputing errors on your credit report.
Protecting taxpayers and their tax refunds from identity theft is a top priority for the IRS. This year the IRS expanded its efforts to better protect taxpayers and help victims dealing with this difficult issue.
When your personal information is lost or stolen, it can lead to identity theft. Identity thieves sometimes use your personal information to file a tax return to claim a tax refund. Then, when you file your own tax return, the IRS will not accept it and will notify you that a return was already filed using your name and social security number. Often, learning that your return was not accepted or receiving a contact from the IRS about a problem with your tax return is the first time you become aware that you’re a victim of identity theft.
How to avoid becoming an identity theft victim.
How to know if you are, or might be, a victim of identity theft.
Your identity may have been stolen if the IRS notifies you that:
Respond quickly using the contact information in the letter you received from the IRS so that we can begin to correct and secure your tax account.
If you think you may be at risk for identity theft due to a lost or stolen purse or wallet, questionable credit card activity, an unexpected bad credit report or any other way, contact the IRS Identity Protection Specialized Unit toll-free at 1-800-908-4490. The IRS will then take steps to secure your tax account. The Federal Trade Commission also has helpful information about reporting identity theft.
If you have information about the identity thief who used or tried to use your information, file a complaint with the Internet Crime Complaint Center.
For more information – including how to report identity theft, phishing and related fraudulent activity – visit the Identity Protection home page on IRS.gov and click on the Identity Theft link at the bottom of the page.
IRS Works to Protect Taxpayer Refunds, Detect and Resolve Identity Theft Cases
The IRS takes identity theft-related tax fraud very seriously and realizes that identity theft is a frustrating process for victims. By late 2012, the IRS assigned more than 3,000 employees — more than double from 2011 — to work on identity theft-related issues.
The IRS continues to enhance its screening process to stop fraudulent returns. During 2012, the IRS protected $20 billion of fraudulent refunds, including those related to identity theft, compared with $14 billion in 2011.
The IRS recently announced that a year-long nationwide focus on tax refund fraud and identity theft has resulted in more than 100 arrests in 32 states and Puerto Rico. In January 2013 alone, the IRS targeted 389 identity theft suspects resulting in 734 enforcement actions. To learn more, see IRS Intensifies National Crackdown on Identity Theft on IRS.gov.
Additional IRS Resources:
Please contact Tax On Wheels, LLC at 803 732-4288 if you have questions about Identity Theft.
A New York Times article describing a cyber espionage unit, allegedly affiliated with the Chinese Army, that has made significant efforts towards infiltrating the computer networks of anything in the US that can be penetrated. The article is apparently based on a report released by Mandiant Corporation (PDF).
The New York Times article does not draw a direct line between the Chinese government and the South Carolina Department of Revenue hacking incident, but you do the math and see what you get.