I haven’t filed my 2012 income taxes yet, but I had planned to file them electronically like most people do these days. Unfortunately that option is no longer available to me because someone else has already filed a 2012 return using my social security number.
My first clue that something was very, very wrong was when I looked through my mail last Monday night and found an envelope from the U.S. Department of Treasury with a familiar look to it. I’m old enough to remember the days when filing income taxes involved mailing off my taxes and receiving a paper refund check in return. And when I opened the envelope, that’s what I found: a refund check made out to me and a stranger named Janice. (I’m not going to give Janice’s full name here as she may be just as much of a victim as me.)
My first call Tuesday morning was to the accountant who is my tax preparer. He confirmed that my 2012 taxes hadn’t yet been filed and told me I would need to call the IRS directly. Calling the IRS around tax time is bound to result in a long hold time, so I was prepared for that. The phone tree I had to navigate was daunting and I accidentally hung up once, but I eventually got a real, live person on the phone. She asked me what tax year I had last filed, what my filing status had been, and whether I claimed any dependents. Then she confirmed the worst: that was definitely a refund check and someone had “used my information” to file a 2012 tax return.
The IRS agent informed me that I will have to file my taxes the old-fashioned way this year: by mail. I must include a copy of a government issued ID and IRS Form 14039, an Identity Theft Affidavit (of course the IRS has a form for that!). My return will be processed manually, and if I’m entitled to a refund it may take up to six months for it to be issued to me by check. As for the check, I was instructed to write VOID on the back of it and to mail it to the processing center in Kansas City.
I asked the agent if she could clarify for me that when she said someone had “used my information” to file a return that meant my social security number had been used. Her answer was yes, which meant that I had to take additional steps to make sure that my SSN isn’t used in even more damaging ways. I was instructed to contact one of the major credit agencies to place a free 90-day fraud alert, and that the agency I contacted would alert the others automatically.
When I got off the phone with the IRS, I recalled that an insurance product I had purchased last year entitled me to identity theft coverage, so I placed a call to that company next. I was given similar information by the agent and also a bit of reassurance. She said that usually these types of thieves don’t tend to use the SSNs to open fraudulent credit accounts. I hope she’s right.
One final step I took was to file a police report. According to the email sent to me by Equifax confirming the 90-day fraud alert, the report issued to me by Chicago Police Department should entitle me to an extended fraud alert, although I do have to mail in a copy of the police report and a form.
I wish I knew how someone got my SSN, but it’s unlikely I’ll ever find that out. While I’m very careful with my personal information and always cross-cut shred anything that could be sensitive, there are still many legitimate reasons that I’ve had to provide my SSN, such as on mortgage applications and school records. Heck, when I was an undergrad we used or SSN as our ID! I had my SSN memorized after just one term since we had to provide it to enroll in classes and whenever we talked with an enrollment counselor or the financial aid office. I have no idea how those records have been maintained over the years; perhaps they were easily compromised.
The IRS and financial institutions are aware of these scams and have been intensifying efforts to undercover this type of fraud. It’s because of the fraud screens the IRS and banks use that I received a paper check. The IRS agent I spoke with told me that the thief would have provided a bank account for an electronic refund, however something didn’t match up quite right and the bank rejected the deposit. This triggers the Treasury to issue a paper check, which then was mailed to the legitimate address used on the tax return.
Thinking about this just as a taxpayer and not as a victim, it still makes me angry. The one link above points to an article on the IRS website that notes the identity theft screens “…helped the IRS in 2012 protect $20 billion of fraudulent refunds, including those related to identity theft, compared with $14 billion in 2011.” People rant about wasting federal dollars, but if this is how much is recovered, I wonder how much is actually not recovered and wasted on fraud like this? Those thieves are stealing our money! Money that could be better spent on social programs for the poor and sick, for example.
Learning that your identity has been stolen is stressful and depressing. I think I’ve done all I can to protect myself from further harm in the short-term, and remain hopeful that this is the worst it gets.