Can Someone File a Tax Return in My Name and Receive My
Refund. Is This True?
It's called tax identity theft and a growing number of people have become victims to this
frustrating crime.
As you likely know, identity theft can be a risk every time you swipe your credit card at a store
or provide your Social Security number online. But you might not realize how it works on the tax
front. Clever con artists masquerading as IRS representatives or agents may try to steal your vital
information and use it for illegal means. Or an identity thief could file a fake tax return under
your Social Security number to obtain your refund.
The IRS itself was hacked in May of 2015 and thieves stole information from approximately
100,000 accounts. The data breach affected taxpayers who used the "Get Transcript" application
on the IRS website.
Here are some ways you may find out that you've been the victim of a tax identity scam:

You receive an IRS notice or letter stating that more than one tax return for you was filed.
A criminal may have used your identity to fraudulently file a tax return and claim a
refund. Generally, identity thieves use a stolen Social Security number and try to file
early in the tax season to collect a refund before the legitimate taxpayer files.

You're informed by the IRS that you have a balance due or a refund offset, or a collection
action was taken against you for a year in which you didn't file a tax return.
 IRS records indicate you received wages from an employer unknown to you. Obviously,
this is a troubling situation. If you're due a tax refund but someone has beaten you to it by
filing a tax return in your name and with your Social Security number, it could be months
before the IRS is able to determine which return is legitimate and which is fraudulent.
How Can this Happen?
Part of the problem is the vulnerabilities involved in the way the IRS delivers refunds, according
to an investigation by the Treasury Inspector General for Tax Administration (TIGTA). As part
of the investigation, TIGTA looked at 1.5 million cases of undetected fraud. Of those, 1.2 million
cases (82%) involved the issuance of directly deposited refunds, including refunds issued on
debit cards. While opening a bank account requires personal identification, TIGTA said "each
method of obtaining a debit card requires a different level of verification in order to acquire a
card."
In a previous TIGTA report, an investigation showed that the IRS was "not in compliance with
direct deposit regulations that require tax refunds to be deposited to an account only in the name
of the individual listed on the tax return."
What's Being Done to Stop Tax ID Theft?
In response to growing tax ID theft concerns, the IRS has embarked on a comprehensive strategy
for preventing, detecting and resolving identity theft cases as soon as possible. The tax agency
has also stepped up its internal reviews to help spot false tax returns before tax refunds are issued
and vowed to continue to help victims of identity theft refund schemes.
If you believe your personal tax information has been stolen and is being used for illegal
purposes, immediately contact the IRS Identity Protection Specialized Unit. If you are a victim,
you will be given an Identity Protection Personal Identification Number (IP PIN) to validate your
identity. It allows legitimate returns to be processed, prevents processing of fraudulent returns
and can mitigate delays in victims' federal tax return processing. For more information, visit the
IRS website at www.irs.gov/identitytheft.