USA Today: Identity Thieves Tax the System

USA Today has an excellent article on Identity Theft and stolen tax refunds.  There are some good anecdotal stories as well as some great quotes.  Some people think I'm whistling past the graveyard when I talk about how serious the threat of Identity Theft is at user group meetings, but the facts are what they are.   Consider these quotes and facts from the article by Kevin McCoy on the front page of the Money section:- Complaints to the FTC linked to Identity Theft rose 158% from 2003 to 2007.  Similar complaints to the IRS Taxpayer Advocate jumped 644% over the past 3 years.- [The theft of identities for tax fraud] "nightmare is spreading, according to USA TODAY interviews with more than a dozen accountants and other tax experts nationwide.   Often the goal is to collect an undeserved tax refund.  File with one stolen identity, claim multiple dependents and apply for the federal Earned Income Tax Credit, and an identity thief can snag a tax refund worth thousands of dollars, or more."- "Alternatively, taking another's identity can help thieves hide a criminal conviction, illegal-immigration status or other problem that could block them from getting a job.    Their employers file W-2 wage-reporting forms with the IRS, which attributes the income to the true owner of the Social Security Number (SSN).  Victims don't discover the problem until the IRS contacts them with questions about under-reporting of income."- Many victims of identity theft wait for refunds that don't come (because of identity theft) and then the failure to receive the counted-on tax refund cause other complications and hardships.  Then, proving to the IRS that you didn't actually receive the reported income can be a huge problem.- Many accountants report that the IRS "exacerbates the difficulties faced by victims" by ignoring common-sense evidence about the rightful owner of the disputed SSN, gave alleged victims temporary identification numbers to file tax returns and then denied tax benefits to those victims for not using a SSN to file, provided inadequate authentication processes for electronic filing, and provided inconsistent instructions from one office to another, leaving victims bouncing between one place and another within the IRS. The article offers a sidebar with nine suggestions, most of which are common sense (like memorize your SSN and don't carry your SSN or card with  you or in a purse or wallet).  One that I thought was on the right track but insufficient was this:"Make sure your [tax] preparer has installed updated versions of anti-spyware and anti-virus software on computers used for tax work." When I discovered INVISUS three years ago, first thing I did was talked to my accountant and financial planner.  They trust me and gave me permission to install INVISUS (iSafe) on all their PCs, and even I was shocked at how much and what kind of malware we found.   They both had Norton / Symantec software and a part-time IT expert helping them protect their systems.  Suffice it to say, I'm really glad they're being protected by INVISUS now.   And I'm also glad that I'm protected not only by iSafe but also iDefend (for Identity Theft).   You deserve to enjoy the same peace of mind I do - just bite the bullet and spend the money necessary to protect yourself.  No one likes buying insurance or other preventative services, but it always feels much better once you do.  Plus, you discover unexpected benefits - and that has certainly been the case with INVISUS for me.  The unexpected benefits included the peace of mind and the enormous time savings in relation to dealing with my PC.    Don't forget that if your accountant signs up 7 or more PCs, then YOUR subscription is free if you join the 5&Free program.  Join those of us who love INVISUS - just give it a try.  You can call (800)511-9524 to sign up.  Check the details in the tabs for iSafe, iDefend, or iSimplify (to get every PERSONAL computer service INVISUS offers).