What Is Tax Identity Theft?

September 13, 2023

Tax identity theft is one of the most common offenses in the United States. It happens when an individual appropriates a taxpayer's information, like their Social Security Number (SSN) or their Tax Identity Number (ITIN), in order to steal the taxpayer's credits or refund money. Job placement is another recurring motive among people committing tax identity theft.


Keep in mind that the documents mentioned above are part of the requirements to get a job in the U.S. Companies, employers, and employees alike are expected to report the earnings they've obtained to the Internal Revenue Service (IRS), including the income accrued from their wages/salaries or through independent outsourcing services. Today, our certified tax preparers will tell you all you need to know about tax identity theft so you can avoid all chances of falling victim to this crime.

How Does Someone Commit Tax Identity Theft?

As mentioned above, tax identity theft can happen in two different ways: tax identity theft pertaining to the appropriation of the taxpayer's tax benefits, and tax identity theft that's committed for job placement purposes.


There's a constant influx of undocumented immigrants looking for better job opportunities in the U.S., many of whom are striving to improve their quality of life while lacking the necessary resources and documents to start anew on American soil. Some of these individuals can intentionally or unintentionally seek underground services from other people within the country. The individuals providing these services see tax identity theft as a lucrative business opportunity, as undocumented immigrants often see no other way out if they want to become part of a legitimate company's payroll. Others, however, have the direct goal of snatching credits and refunds from taxpayers.


A person's tax information is required to qualify for any job position and it must be shared with employers and companies to let taxpayers fulfill their tax obligations. For this reason, you should only shared this information with trustworthy individual and certified entities; you'll be disclosing a valuable asset to a third party, and this has its risks if you haven't checked their history and credentials. To determine whether or not you're become victim of tax identity theft, you only need to file your tax return.

How Can I Protect My Tax Identification?

As instances of tax identity theft became more frequent, the IRS created the voluntary program for Identity Protection PINs, aiming to protect the users' identities from the wave of fraudulent activity that's been recorded over the last few years.


The IP PIN can be obtained via the IRS's online portal. You only need to log onto your account or complete registration to validate your identity. After you've registered to the portal, you'll get a CP01A Notice with your six-digit IP PIN enclosed within. The IP PIN is renewed every year, so the IRS will continue issuing notices to your personal email with a new IP PIN at the start of a new taxable year.

Our Tax Preparers Help You Protect Yourself Against Tax Identity Theft

United Tax & Accounting Group is the tax preparer firm you need to present your individual and business taxes with the reassurance that your identity information is well guarded. For more than a decade, we've brought security and support to all our clients, and our accounting and tax-related services are in high demand in all parts of the country. Clients count on us to plan, prepare, and file their taxes right on schedule and with perfect accuracy.


If you've suffered from tax identity theft, we recommend contacting our tax consultants to get the guidance you need. We can help you bring a quick solution to your case and safeguard your tax identity to avoid similar situations in the future. Our firm also provides the best tax preparation services in Spanish to make the process more accessible for those who aren't fluent English speakers. This way, you can easily follow the necessary steps to recover your identity information and obtain your IP PIN.

Don't risk an unpleasant situation and trust our certified tax preparers! You can call (786) 431-5576 or fill out our website's contact form. You can also share your questions or doubts via our live chat. We'll be happy to assist you in any way you need and guarantee the best protection for you and your company.