In 2008, the IRS found only 50,000 incidents of identity theft and employment fraud and stopped 90% of fraudulent tax returns. James White, director of tax issues on the GAO strategic issues team reports, “data provides an incomplete picture of the amount of identity theft-related fraud occurring at the IRS.

If an identity thief steals the identity of a child the IRS would not be able to detect it because a child has no filing obligations. The IRS would just see a name and a social security number that match and the income on the tax return matches income reported by the employer.

In fact the IRS fraud detection process is slow and only after the IRS notifies a taxpayer of unreported income that the IRS eventually learns from the taxpayer that someone else is using their identity. By the time it is discovered more than a year or two may have elapsed.

There is no way for the IRS to determine how many incidents of fraud go undetected. “The security and privacy of taxpayer information is of the utmost importance to the IRS,” Shulman wrote in response to the report. “I have made it a priority of this agency to reduce the burden placed on the taxpayer and the tax system because of identity theft.”

Who is using your Identity? 

AmeriPlan is now offering an Identity Theft Program that offers a multi-faceted approach to the problem of identity theft. The program includes proactive monitoring, full restoration in that event that your identity is stolen, legal services and $25,000 insurance. To learn more schedule a FREE consultation.

Author: Debbi Carroll, Certified  Identity Theft Risk Management Specialist. Debbi recommends that you check your credit report on a regular basis and those of your children.