Tag Archives: identity theft

Tax professionals are asked to encourage electronic filing

Tax On Wheels, LLC received the following message from the South Carolina Department of Revenue and we pass it along for your consideration.

Tax Professionals: Encourage Electronic Filing This Tax Season

The South Carolina Department of Revenue places the highest priority on safeguarding taxpayer information entrusted to it by all taxpayers. The electronic filing of tax returns with the Department has always been, and will remain, a safe, secure and efficient means of filing.

In light of the recent computer security breach, it is important to note that no data was lost in the transmission of tax information upon submission to or from the Department. Confidential information that was stored on the Department’s computer servers was hacked into and then stolen in a criminal act.

Since this incident, measures have been taken to heighten the protection of confidential data so as to avoid future security compromises, and upon recommendations from cyber-security experts, additional security safeguards have been implemented and will continue to be further established in the future.

Taxpayers are safe and secure in filing their state tax returns electronically as it is the most efficient means of filing for taxpayers. As tax professionals, you are aware that with electronic filing comes many advantages for the taxpayer including receiving a refund in a shorter amount of time as well as less opportunity for errors.

Throughout the individual income tax filing season, information will be provided to the public as it is available. Our goal is to keep taxpayers informed and aware of any helpful information regarding the filing of tax returns and ensure to the public that filing electronically with the Department is secure. Current information that may be useful throughout the individual income tax season is available online at www.sctax.org under the “Individual Income” link.

 

IRS Intensifies National Crackdown on Identity Theft; Part of Wider Effort to Protect Taxpayers, Prevent Refund Fraud

WASHINGTON – Continuing a year-long enforcement push against refund fraud and identity theft, the Internal Revenue Service today announced the results of a massive national sweep in recent weeks targeting identity theft suspects in 32 states and Puerto Rico, which involved 215 cities and surrounding areas.

The coast-to-coast effort against 389 identity theft suspects led to 734 enforcement actions in January, including indictments, informations, complaints and arrests. The effort comes on top of a growing identity theft effort that led to 2,400 other enforcement actions against identity thieves during fiscal year 2012.

The January crackdown, a joint effort with the Department of Justice and local U.S. Attorneys offices, unfolded as the IRS opened the 2013 tax season. IRS Criminal Investigation expanded its efforts during January, pushing the total number of identity theft investigations to more than 1,460 since the start of the federal 2012 fiscal year on Oct. 1, 2011.

“As tax season begins this year, we want to be clear that there is a heavy price to pay for perpetrators of refund fraud and identity theft,” said IRS Acting Commissioner Steven T. Miller. “We have aggressively stepped up our efforts to pursue and prevent refund fraud and identity theft, and we will continue to intensely focus on this area. This is part of a much wider effort underway for the 2013 tax season to stop fraud.”

The national effort with the Justice Department and other federal, state and local agencies is part of a larger, comprehensive identity theft strategy the IRS has embarked on that is focused on preventing, detecting and resolving identity theft cases as soon as possible.

The identity theft effort – which intensified in January as the 2013 filing season opened – involved 734 enforcement actions related to identity theft and refund fraud. The effort led to actions taking place throughout the country involving 389 individuals. The effort included 109 arrests, 189 indictments, informations and complaints, as well as 47 search warrants.

In addition to the criminal actions, IRS auditors and criminal investigators conducted a special compliance effort starting on Jan. 28 to visit 197 money service businesses to help make sure these businesses are not assisting identity theft or refund fraud when they cash checks.  The compliance visits occurred in 17 high-risk places identified by the IRS covering areas in and surrounding New York, Philadelphia, Atlanta, Tampa, Miami, Chicago, Houston, Phoenix, Los Angeles, San Diego, El Paso, Tucson, Birmingham, Detroit, San Francisco, Oakland and San Jose.

A map of the locations and additional details on the January enforcement actions and compliance visits are available on IRS.gov. The latest updates on the identity theft enforcement efforts and individual cases are available on a special Identity Theft Schemes page on IRS.gov. More information on enforcement actions can be found on a DOJ Tax Division page.

The identity theft push over the last several weeks reflects a wider effort underway at the IRS. Among the highlights:

  • The number of IRS criminal investigations into identity theft issues more than tripled in fiscal year 2012. The IRS started 276 investigations in fiscal year 2011, a number that jumped to 898 in fiscal year 2012. So far in fiscal year 2013, there have been more than 560 criminal identity theft investigations opened.
  • Total enforcement actions continue to rapidly increase against identity thieves. This category covers actions ranging from indictments and arrests to search warrants. In fiscal year 2012, enforcement actions totaled 2,400 against 1,310 suspects. After just four months in fiscal 2013, enforcement actions totaled 1,703 against 907 suspects.
  • Sentencings of convicted identity thieves continue to increase. There were 80 sentencings in fiscal year 2011, which increased to 223 in fiscal year 2012.
  • Jail time is increasing for identity thieves. The average sentence in fiscal year 2012 was four years or 48 months – a four-month increase from the average in fiscal year 2011. So far this fiscal year, sentences have ranged from 4 to 300 months.

More information on IRS Criminal Investigation efforts is available on IRS fact sheet FS-2013-12.

In addition to the national “sweeps” effort announced today, IRS work on identity theft and refund fraud continues to grow. For the 2013 filing season, the IRS has expanded these efforts to better protect taxpayers and help victims.

To stop identity thieves up front, the IRS has made a significant increase for the 2013 tax season in the number and quality of identity theft screening filters that spot fraudulent tax returns before refunds are issued. The IRS has dozens of identity theft screens now in place to protect tax refunds.

These efforts helped the IRS in 2012 protect $20 billion of fraudulent refunds, including those related to identity theft, compared with $14 billion in 2011.

By late 2012, the IRS assigned more than 3,000 IRS employees — over double from 2011 — to work on identity theft-related issues. IRS employees are working to prevent refund fraud, investigate identity theft-related crimes and help taxpayers who have been victimized by identity thieves. In addition, the IRS has trained 35,000 employees who work with taxpayers to recognize identity theft indicators and help people victimized by identity theft.

“We are strengthening our processing systems to watch for identity theft and detect refund fraud before it occurs,” Miller said. “And we continue to put more resources on helping people who are victims of identity theft and resolve these complex cases as quickly as possible.”

Taxpayers can encounter identity theft involving their tax returns in several ways. One instance is where identity thieves try filing fraudulent refund claims using another person’s identifying information, which has been stolen. Innocent taxpayers are victimized because their refunds are delayed.

To help taxpayers, the IRS has a special section on IRS.gov dedicated to identity theft issues, including YouTube videos, tips for taxpayers and a special guide to assistance. For victims, the information includes how to contact the IRS Identity Protection Specialized Unit. For other taxpayers, there are tips on how taxpayers can protect themselves against identity theft.

If a taxpayer receives a notice from the IRS indicating identity theft, they should follow the instructions in that notice. A taxpayer who believes they are at risk of identity theft due to lost or stolen personal information should contact the IRS immediately so the agency can take action to secure their tax account. The taxpayer should contact the IRS Identity Protection Specialized Unit at 800-908-4490.  The taxpayer will be asked to complete the IRS Identity Theft Affidavit, Form 14039, and follow the instructions on the back of the form based on their situation.

Taxpayers looking for additional information can consult the special identity protection page on IRS.gov.  You may also contact Tax On Wheels, LLC at 803 732-4288.

Recommended actions to protect yourself from Identity theft

This item was originally posted on November 23, 2012.  As we enter tax season this has become a popular topic once again and we are re-posting this for your convenience.

It took a couple of weeks for the public to be notified of the theft of South Carolina tax information and a couple more weeks for useful information to begin to trickle out.  With that as the foundation of this issue it is apparent that speed is not going to save the day.  So there really is no need to get into a panic and rush through anything.  For those of us who have had our tax information stolen this will be a race of endurance, perhaps a lifelong struggle to secure our identity.

The SCDOR cyber theft heralds the end of a world where there is even a semblance of privacy.  If it ever did exist, privacy is certainly a thing of the past.  South Carolina is simply the biggest fish to get caught so far.   Even before the SCDOR hacking was announced to the public, a major insurance company contacted authorities regarding the theft of several thousand social security numbers in a similar cyber theft incident.  Folks, we are simply not in Kansas anymore.

Before we provide our list of recommended actions to protect yourself from these crimes, I would like to ask you a few questions.

  • Why is it that we have to take specific affirmative action to stop the credit bureaus from giving our private information to whoever is willing to pay them for it?
  • Why doesn’t the system require us to take some action to authorize the use of our information?
  • And if it is our information and it belongs to us why do they get paid for it?

While you are chewing on that let’s explore the grassy knoll a bit more and list a few things that I think you can do to protect yourself not only from the criminals working outside the system but also from the fine upstanding corporations who trade our identities like so many marbles after school at the neighborhood playground.

  1. Yes, by all means, sign up for the ProtectMyID/scdor free year of credit protection, as woefully insufficient as it may be and as complicit as the credit bureaus may be in causing you to need this protection.  Hen house meet fox!
  2. Credit protection will not protect your bank account.  Therefore you will need to determine how best to protect any account that was used to receive a state of South Carolina tax refund or pay a South Carolina balance due on any efiled tax return since 1998.  I struggled with the wording of this recommendation but I think the best thing I can say is “contact your financial institution and let them help you determine whether or not you need to close your bank account.”  There is an interesting article here that discusses the bank account issue.  One point raised in the article is that your bank account information is on every check you write so that information is already out there.  To which I would reply A. Who writes checks anymore and B. If we do write a check it is usually not written to Russian cyber criminals (unless you count birthday checks to the grand kids).
  3. Monitor your bank accounts daily or at least weekly.  If you are afraid of online banking it is time to educate yourself and overcome that fear.  It simply is not sufficient to wait until the monthly statement comes in the mail 30 to 40 days later.  By then the damage is done.  Sure the bank may replace all of your stolen money a few days or weeks later  but you are still the one that will have to go all over town explaining why your checks bounced if your money is stolen.
  4. Review every item on every credit card on every statement every month. And don’t let them talk you into getting online statements instead of paper statements unless you are a college student and your address changes every 9 months.  Online statements can easily get caught up in the rush of all the other junk email that comes into your in box. If you plan to be at your address for the next 20 years request the paper statements.  Besides, the post office needs the work.
  5. Purchase a high quality cross cut shredder and shred those bank and credit card statements after you have reviewed them for accuracy.  Do not let your information leave your house by way of the garbage.
  6. Promptly open and read every piece of mail that comes to your mailbox even if it looks like junk mail.  Some of that mail may hold clues that something strange is happening with your credit information and allow you to nip it in the bud.
  7. Go online and Google yourself (ask your grand kids if you don’t know what that means).  You might be surprised at all of the information about you that is already floating around out there for anybody willing to look for it.  And its all legal.  Available data include your birth date, the price you paid for your house, a picture of your house (both aerial and street view) with a map to your house, a list of your relatives, your arrest records, your occupation, your education and who knows what else.  And this is for anybody with an internet connection.  Just imagine what can be found by people with special tools, training and a bit of larceny in their hearts.  The point is that there is no such thing as privacy.  Govern yourself accordingly.

This list is still evolving and may grow as we find new information so check back often.

If you need assistance with the issues raised in this post please feel free to contact Tax On Wheels, LLC at 803 732-4288.

 

The Big Picture with Charles Bierbauer; a recap of the issues surrounding ProtectMyID/SCDOR

A few months have now past since the big hacking incident at the South Carolina Department of Revenue revealed the social security numbers of millions of South Carolina taxpayers. While many of us were intently focused on this issue from day one, many others actually have a life and may have missed a few beats.

South Carolina ETV conducted a recap of sorts during an episode of their weekly program “The Big Picture” hosted by Charles Beirbauer.  This program was broadcast shortly after this incident came to public attention.  So if you feel that you need a bit of a refresher on the details of the hacking incident as we begin tax season, or if you want to gather information on protecting yourself from identity theft, you may want to view the archived broadcast here.

 

FREE Identity Protection Webinars Offered This Week

Columbia, SC (January 15, 2013) — The South Carolina Department of Revenue (SCDOR) is joining the South Carolina State Library and the South Carolina Department of Consumer Affairs (SCDCA) to provide taxpayers with informational material on minimizing the possibility of identity theft.

Available to all South Carolina taxpayers, the series of webinars held January 16, 17 and 18 titled The Truth About Identity Protection will address taxpayers’ concerns regarding security breaches, credit reports, and enrolling in credit monitoring services. Staff members from SCDOR, the State Library, and SCDCA will provide webinar attendees with detailed information and will also answer questions and address concerns during this online session.

It is encouraged that libraries, companies, and organizations offer sessions to staff members or the public by showing the webinar in a meeting room or computer lab.  Individuals can also participate from home via the Internet.  To register, visit the South Carolina State Library’s calendar of events or select from the dates below.

January 16, 2013 2:00-3:30pm

January 17, 2013 6:00-7:30pm

January 18, 2013 10:00-11:30am

Please contact Tax On Wheels, LLC at 803 732-4288 if you need assistance with this subject.

Identity Protection Webinars Offered in January

The South Carolina State Library has partnered with the South Carolina Department of Revenue and the South Carolina Department of Consumer Affairs to provide the public with information on how to minimize the possibility of identity theft. The free webinar, The Truth About Identity Protection, will address the issues of security breaches, credit reports, and enrolling in credit monitoring for South Carolinians.  Staff members from these state agencies will provide detailed information and resources and also be available to answer questions during this online session.

You may visit the South Carolina State Library website for details.

Please contact Tax On Wheels, LLC at 803 732-4288 if you have questions.

Letters about the SCDOR cyber hacking are in the mail

The South Carolina Department of Revenue has begun sending out letters notifying taxpayers about the theft of social security numbers and other information.  The letters confirm that only electronic filers are affected.   Taxpayers who have already signed up for the state provided identity theft protection are supposed to be notified by email.

Click here to review the details surrounding this issue and click here to read our recommended action list to help protect yourself from the risk of identity theft.  Or feel free to contact Tax On Wheels, LLC at 803 732-4288 if we may assist you with this issue.

Free credit monitoring from online resources

In light of the debacle at the South Carolina Department of Revenue where confidential information for millions of taxpayers, including social security numbers, was stolen, credit monitoring has been a hot topic of discussion.  The state has paid for one year of credit monitoring through Experian for everyone affected.  But what happens when that year runs out.  There has been talk of the state possibly paying for a second year of credit monitoring for everyone but it is expected that everyone will pretty much be on their own when the year (or two) expires.

It turns out that there are free resources available for people who are unable (or refuse) to pay for credit monitoring.  This New York Times article provides details on free online services that may be a cost free alternative to paying for credit monitoring.

We have not reviewed or used these services nor do we recommend this or any other credit monitoring service.  We are simply providing information about available resources which you may find helpful.  As with any, online service, please make sure you check it out carefully and know the details before you sign up.

Please be sure to give Tax On Wheels, LLC a call at 803 732-4288 if you have questions about this or any other tax issue.

Experian credit monitoring enrollment deadline extended

South Carolina taxpayers who are affected by the Department of Revenue cyber hacking incident will have an additional two months to sign up for free credit monitoring at www.protectmyid.com/scdor.

WIS Television in Columbia SC is reporting that the deadline for signing up has been extended until March 31, 2013.

–     Call 1-866-578-5422 to enroll in a consumer protection service. (The call center is open 9:00 AM – 9:00 PM EST on Monday through Friday and 11:00 AM – 8:00 PM EST on Saturday and Sunday.)

–      For any South Carolina taxpayer who wishes to bypass the telephone option, there currently is an online service available at http://www.protectmyid.com/scdor. Enter the code SCDOR123 when prompted.

ID Theft: Avoiding and Detecting

The South Carolina Department of Consumer Affairs in conjunction with the South Carolina State Library is offering a free webinar to provide information on avoiding and detecting identity theft.  The webinar will be conducted on Tuesday, December 18, 2012 10:30 AM – 11:30 AM EST.

The webinar is free and open to the public.  Click here to register to attend.

Additionally, the South Carolina Department of Revenue and the South Carolina Department of Consumer Affairs, have partnered with the State Library to offer educational webinars designed to inform the public on how to enroll in credit monitoring and learn more about how to minimize the effects of a security breach.  The YouTube video of a previous session is included below for your convenience.