Identity Theft and Your Taxes

Tax-refund fraud was a major issue in the 2014 tax year and is expected to reach $21 billion by 2016.   If you have been at all concerned about taxpayer identity theft, you may find it reassuring to know that the IRS is in the process of testing a program which aims to reduce the problem.  The idea behind the program will be to require distributors of W-2s to include a verification code which the recipient will report on his or her tax return.  This will authenticate W-2 data and make it more difficult to file a fraudulent return.

 

Hunter, Matt. “Tax-refund Fraud to Hit $21B, Little IRS Can Do.” CNBC. N.p., 11 Feb. 2015. Web. 02 Dec. 2015.

The Kiplinger Tax Letter 90 No.22 (23 Oct. 2015): 4. Print.