Technology has done so much to simplify life, but it also complicates it in many ways. The personal information of Massachusetts residents is out there for clever hackers to steal. When that information is stolen in order to defraud the IRS through tax-related identity theft, the only way individuals may know about it is when their income tax returns are rejected.
A Massachusetts resident may discover that someone else used his or her Social Security number to obtain a refund through a letter from the IRS indicating it received a suspicious tax return. Another way a taxpayer may find out is when his or her lawful income tax return is rejected because the agency says it is a duplicate. It would be easy to dismiss this as a mistake, but that would be the error.
Another person may also use an individual’s Social Security number to obtain employment. The employer of that person will report it to the IRS. When you fail to report this income because you know nothing about it, the IRS will accuse you of failing to report income.
In either of these cases, the situation requires immediate attention. As the taxpayer, the individual will more than likely find him or herself having to prove to the IRS that identity theft occurred. Unfortunately, this situation can quickly get out of control since the IRS may not be the only source of trouble. Fortunately, in order to avoid costly ramifications in the form of penalties, interest and possibly criminal charges, an individual could work with an experienced tax attorney to help resolve the tax-related issues.