Tax Identity Theft Introduction
Most people think of identity theft as stolen bank account or credit card information.
When it comes to tax fraud, identity thieves may use a taxpayer's Social Security number to get a job or file a fraudulent income tax return to get a refund.
The affected taxpayer will be alerted when he or she receives a bill or notice from DOR. Often, a victim of tax identity theft never lived or worked in Massachusetts.
If you believe you are a victim of tax identity theft, contact DOR:
- (617) 887-6350
- Identitytheftfeb@dor.state.ma.us
Learn about DOR's Fraud Prevention Program.
Your Social Security Number
Under Massachusetts law, DOR has the right to ask an individual to provide his or her Social Security number on a Massachusetts tax return.
DOR uses these numbers for:
- Taxpayer identification
- Forms processing.
- Tax refund processing.
Although tax return information is generally confidential, DOR may legally disclose return information to:
- Other taxing authorities
- Those authorized by law.
For more information about the confidentiality of tax information, visit:
- Massachusetts General Laws, Chapter 62C, Section 21: Disclosure of tax information
- 830 CMR 62C.21.1: Confidentiality of Tax Information
Protect Your Personal Information
Identity thieves have many ways of stealing your personal information. To decrease your risk, you should:
- Order a free copy of your credit report and
- Check it for accuracy each year.
Keep personal information in a secure place in your home, including:
- Social Security card
- Birth certificates and
- Anything else you may carry in a purse or wallet that has sensitive information.
Review all credit card and bank statements each month for any:
- Unusual activity or
- Unauthorized charges.
Unless you know for certain whom you’re dealing with, don’t provide personal information:
- Over the phone
- Through the mail or
- Online.
Change your driver's license number from your Social Security number to a randomly assigned number. Visit the Massachusetts Registry of Motor Vehicles for more information.
Choosing a Tax Preparer
Since preparers have access to your personal information, be sure you hire a reputable tax preparer.
According to IRS, taxpayers should always avoid paid preparers who:
- Claim they can obtain larger refunds than other preparers
- Guarantee results or
- Base fees on percentage of refund amount.
Although DOR cannot recommend a preparer, the following may provide guidance when you’re choosing a tax preparer:
Sole Proprietorships
If you’re the sole proprietor of a business, the IRS recommends:
- Keeping your Social Security number private, for business purposes
- Using an Employer Identification number instead of your Social Security number.
To apply for an Employer Identification number (EIN), visit the IRS.
Contact DOR
If you believe you are a victim of tax identity theft, contact DOR:
- (617) 887-6350
- Identitytheftfeb@dor.state.ma.us
Learn about DOR's Fraud Prevention Program.
IRS Guidelines
IRS provides guidance on how you can protect yourself from tax fraud.
According to IRS, taxpayers should always avoid paid preparers who:
- Claim they can obtain larger refunds than other preparers
- Guarantee results or
- Base fees on percentage of refund amount.
Instead of a Social Security number, IRS recommends sole proprietors use an Employer Identification (EIN) for business purposes.
To apply for an EIN, visit the IRS.