Tax ID Theft Reported in East Chicago, Ind.

It’s tax season—and that means fraud season for identity thieves looking to line their pockets with other people’s refund money. Stealing a person’s name, Social Security number and other info, filing a return using it, having the refund check routed to the thief—the scam’s been done before. It’s not the easiest form of identity theft, but those who pull it off can make successive “quick hits” on victims for financial gain.

In other cases, individuals use another person’s Social Security number to acquire employment. This can also cause tax processing delays for the SSN’s rightful owner, as it causes discrepancies in information provided to the IRS on the particular tax payer. 

Enter the news from East Chicago, Indiana, where police are investigating a case in which 30 former clients of an area H&R Block are believed to have had their identities stolen and their information used by others to file tax returns, according to a report on ABC affiliate WLS-TV’s Web site.

“Detectives said the problems surfaced when former H&R Block clients tried to file taxes for this year and were told someone had already filed taxes ... and in some cases had gotten their tax return check,” reporter Leah Hope explains.

Victims, each of whom had visited the tax preparer some time within the past four years according to WLS-TV, only discovered the problem after having filed taxes or received return checks containing incorrect amounts.

An H&R Block spokesperson tells the station that the company has notified 27 clients about potential problems and is working with the IRS and local authorities. Concerned victims are encouraged to contact the IRS through its Web site.

Likewise, NBCChicago.com reports that police “advise those who believe they are victims of tax preparation fraud to fill out an “IRS Identity Theft Affidavit” available at a local public safety facility.    

Although the victims in the abovementioned case went to a well-known tax preparation chain, this episode illustrates that there are no hard-and-fast guarantees against having your identity stolen.  Nevertheless, you should still do everything within your power to choose wisely. Research your preparer with the Better Business Bureau and IRS Office of Professional Responsibility to verify the status of their license.  Also watch for your annual statement of earnings from the Social Security Administration.  That will identify all individuals working in the United States under your Social Security Number.  You should receive it approximately three months before your birthday.