Check your Mailbox - Another IRS Data Breach

 

 

 

Cathy Robinson, CPA

Principal

robinson@hwco.com

 

Last month, the IRS stopped identity thieves from attempting to generate E-file PINS for stolen Social Security Numbers.  The PINS are used to efile a tax return.  There were 101,000 Social Security Numbers affected.  The IRS will be contacting the taxpayers to tell them of the breach, and tax return identity theft markers will be placed on their accounts.  There was no personal taxpayer data compromised or disclosed.  The breach was not related to the shutdown of efiling last week. 

 

Remember, the IRS will only contact you by mail.  They will not contact you by telephone or email.  If you need clarification of the correspondence, do not hesitate to consult your CPA.

 

 

IDENTITY THEFT: What to do when your Social Security number is compromised

Cathy A. Robinson, CPA
Senior Manager
robinson@hwco.com
 

When you are a victim of identity theft, the issues can seem endless. Last week, we discussed the steps to take to recover from identity theft. This week, we discuss the issues that come with having your Social Security number compromised.  

If there is a breach and your Social Security number was obtained and used, there are several factors of which you should be aware of:

 

1.)    The Social Security Administration cannot help you with a resolution

2.)    You need to report the incident to the Federal Trade Commission.

3.)    Victims should contact the IRS.

4.)    File an online complaint with the Internet Crime Complaint Center (IC3) at www.ic3.gov.

a.       If you haven’t heard of this agency or know what they do, that’s okay. We’re here to help. The IC3 is a partnership between the FBI and the National White Collar Crime Center. The mission of this agency is to deal with cybercrime.

5.)    Accept free credit monitoring if it is offered by the company responsible for leaking your information.

6.)    Victims should consider placing a credit freeze.

7.)    Monitor your credit report if you do not freeze your accounts.

8.)    In the end, you may have to apply for a new Social Security number.  If you do, you will need to prove your identity, age, and citizenship status. There is no guarantee, however, that a new number will work.  

Being a victim of identity theft can be messy, and having your Social Security number compromised in the process can be challenging. Be sure you know who you need to contact and what steps to take to prevent any further damage. 

This update is published periodically by HW&Co. as an information service to our clients, business associates and friends. It is general information and professional advice should be obtained before acting on any comments contained in this document.

IRS Issues Reminder for Tax-Exempts About May Deadline

Accounting Today announced on May 7^th that the IRS had sent out a reminder on May 6^th to tax exempt organizations. This reminder informs tax-exempt organizations that filing 990-series information returns must be done by May 15^th.  By sending out the reminder they also had hoped to also caution organizations about unneeded personal information and against using Social Security numbers. Instead they’re asking organizations to e-file.

 

The IRS is urging organizations to e-file to help with the reduction of inadvertently including Social Security Numbers and other unneeded personal information.

 

If tax-exempt organizations fail to file annual reports for three consecutive years their federal exemptions are then revoked on the due date of the third filing.

 

Have questions? Contact Nonprofit Director Brandon Miller at (216) 831-1200.

This update is published periodically by HW&Co;. as an information service to our clients, business associates and friends. It is general information and professional advice should be obtained before acting on any comments contained in this document.