The number of victims of employment-related identity theft is far larger than previously estimated and the Internal Revenue Service’s processes aren’t able to keep up, according to a new report.
Employment-related identity theft happens when a criminal uses someone else’s identity to get employment. Many taxpayers first learn they are victims when they get an IRS notice in the mail informing them about a discrepancy in the income reported on their tax returns.
A new report from the Treasury Inspector General for Tax Administration found the IRS failed to identify 497,248 victims of employment-related identity theft, even though criminals electronically filed tax returns with evidence showing they used the victims’ Social Security numbers to gain employment. These victims did not have an IRS tax account, and many were claimed as a dependent on a tax return filed by someone else.
For another 60,823 victims, who do have an IRS tax account, the IRS didn’t update the account with the required employment identity theft marker. One reason (more…)