|
 |
U.S. Senator Sherrod Brown...
Tips to Avoid ID
Theft and Tax Fraud
Identity theft and tax fraud victims – like Michael Bucalo whom I
recently met in Cleveland – know that “there are people out there [who]
are so slick; they can steal your shoes while you are running.” For
criminals who prey on unsuspecting taxpayers, tax season is the time to
cash in – on other people’s hard-earned refund checks.
With more than two million suspected fraudulent tax returns currently
under review by the Internal Revenue Service (IRS), criminals who steal
identities to illegally obtain tax returns are creating a national
epidemic. According to the Federal Bureau of Investigation (FBI), a
Chardon couple was charged with filing at least 35 false income tax
returns, resulting in a total of at least $155,000 in false IRS claims.
Reports also show that Americans make about 50,000 identity theft
claims to the Federal Trade Commission every week – mostly regarding
tax refund theft.
Here’s how it happens: criminals steal taxpayers’ Social Security
numbers and file false tax returns early to steal refunds. Many
Americans may not even realize that their personal information has been
compromised until they file their returns later during the tax season
and discover their return has already been claimed. Identity theft and
fraudulent tax refunds cost Ohioans time and money.
Hardworking Ohioans have to spend time navigating paper trails and
re-establishing their identities – while missing out on the tax refunds
they’ve earned. According to the Taxpayer Advocate’s Office, the
average tax refund in 2011 was about $2,913. This is money that
hard-working Ohioans cannot afford to have taken from them by
fraudsters. And our government cannot afford to hand out billions in
illegal tax returns each year.
That’s why I’m fighting to pass the Identity Theft and Tax Fraud
Prevention Act, which would protect Americans in three, simple ways.
First, it would increase penalties for people convicted of committing
identity theft and cashing fraudulent return checks. We can stop and
deter the networks of criminals who steal, trade, and cash-in on other
people’s identities, by imposing tougher penalties. This bill would
also increase the civil and criminal penalties for improper disclosure
or use of taxpayer information by tax return preparers.
Next, and perhaps most importantly, this bill would expedite tax
returns for Ohioans whose identities have been stolen. Innocent Ohioans
should not be doubly punished – having their identity stolen and their
tax return delayed. Instead, this bill would give all identity theft
victims a unique personal identification number to include on their tax
return to further prevent fraud and avoid tax refund delays. Honest
citizens should not have to wait months and months to get the money
they’ve earned. Ohioans making less than the average gross income of
$32,393 simply cannot afford to go without a refund – or wait longer
than usual to receive a refund because a crime has been committed
against them.
Finally, this legislation would require the IRS, Bureau of Prisons, and
the Treasury Department to step up identity theft tax fraud prevention
programs. We can do a better job of informing citizens how to keep
their information safe. The IRS can do its part to protect taxpayer
information by providing an annual report on the number of reported tax
fraud cases and the actions taken in responses to these reports. The
IRS and Bureau of Prisons can work together to reduce prison tax fraud.
And the Secretary of the Treasury should have the authority to
implement an identity theft tax fraud prevention program to empower
citizens.
If this law had been in place when Michael realized he couldn’t access
his tax refund, then he may not have had to mail the IRS a copy of his
Social Security card, driver’s license, passport, utility bill, and a
copy of the police incident report – just to get the refund he
deserved.
Until we pass this legislation, Ohio taxpayers can help prevent fraud
by taking a few extra steps:
Don’t carry your Social Security card or any document with your Social
Security number;
Avoid sharing your Social Security number and other personal
information – especially over the telephone, Internet, or mail; and
Check your credit report each year.
Ohioans who suspect identity theft can contact local law enforcement
officials or the IRS Identity Projection Specialized Unit at
1-800-908-4490 or click here.
With this legislation, we can protect taxpayers’ privacy and keep
citizens safe. Ohio taxpayers, like Michael, deserve a government that
fights to make sure citizens don’t fall prey to identity theft and tax
fraud.
Sincerely,
Sherrod Brown
U.S. Senator
|
|
|
|
