How can identify theft impact income tax records?
Oftentimes we think of identity theft in terms of the thief using our personal data to open credit card accounts or apply for loans. An additional form of identity theft is an undocumented worker using a taxpayer’s social security number, resulting in additional income reported to the unknowing taxpayer. Each taxpayer receives a yearly Social Security Statement containing a record of earning history and an estimate of social security benefit eligibility. A review of the Social Security Statement allows a taxpayer to reconcile the amount of income earned and the amount reported. Social Security Statements are automatically mailed once a year, three months before the taxpayer’s birthday. Additionally, reports may be requested online from www.ssa.gov/mystatement. Any discrepancies should be reported immediately visit www.ssa.gov/pubs/10064.html#using for instructions. A broker believes she may be a victim of identity theft, what steps should be taken? The FTC offers comprehensive guidance
