| As the internet grows as a business medium, identity | | | | This is where the second problem arises. Your social |
| theft is becoming a bigger problem by the week. Most | | | | security number is also the number used by the IRS to |
| people, however, don't realize it can cause you | | | | track your earnings. If someone else is using it to get a |
| problems with the IRS. | | | | job, the IRS is going to think you earned far more |
| As the name suggests, identity theft is the swiping of | | | | money than you are reporting on your return. Nothing |
| your identity for dubious purposes. If it happens to you, | | | | aggravates the IRS more. You can expect a huge |
| it is more or less a nightmare. The biggest worry for | | | | audit and pure misery until the situation is worked out. |
| most people is credit accounts being opened and | | | | If this nightmare scenario happens to you, are you |
| abused by the thief in question. This results in your | | | | sunk? Nope. The IRS is keenly aware of the problems |
| credit being destroyed, which means good luck in | | | | with identity theft. This is particularly true since scam |
| buying a house and so on. | | | | artists are sending out fake IRS emails to try to snare |
| There are other ways identity theft can be a problem. | | | | unwary individuals. If you are a victim of identity theft |
| Identity theft can really hurt you with the IRS. There | | | | and start getting notice from the IRS, there is one step |
| are a couple of ways this can happen, so let's take a | | | | you need to take. You must immediately contact the |
| closer look. | | | | IRS. If you procrastinate, the IRS is not going to be |
| First, you identity can be used to create fake identities | | | | particularly sympathetic. Act now. |
| for others. It sounds like something out of a spy novel, | | | | Once you act, the IRS will take a closer look at the |
| but there is a more practical application these days. | | | | earnings. They may interview the employer, but will |
| Illegal immigrants are facing new regulations in some | | | | definitely look at the location of the business. If you are |
| states where they must produce proof of citizenship | | | | in Los Angeles and the employer is in Boston, the IRS |
| to receive medical service, a job and so on. Guess | | | | is going to let you off the hook. |
| where they are getting it? Yes, your personal financial | | | | Identity theft is a nightmare, so be careful out there. If |
| information is being sold to them, specifically your social | | | | you run into a problem that gets the attention of the |
| security number. | | | | IRS, communicate immediately with them to avoid |
| So, how does this cause you problems with the IRS? | | | | bigger problems. |