Income tax identity theft is the fastest growing type of identity theft. In 2012, more than 40 percent of the identity theft reported to the federal government was income tax related.

"Identity theft continues to be a serious problem with devastating consequences for taxpayers..." J. Russell George, Treasury Inspector General for Tax Administration, said in a written report issued this past November.

And if you become a victim, it can take an average of 312 days for the IRS to resolve a tax-related identity theft case.

Wonder how someone becomes a victim?

Usually, the identity thief will steal a valid social security number and file a return electronically, pretending to be the person whose social security number was used. They will invent fictitious information that seems to show that a refund is due and then have the IRS send the refund to an address that is not the address of the actual taxpayer.

Or the refund may be applied to a prepaid credit card, like the prepaid credit cards that can be purchased at a local drugstore.

The identity theft is discovered when the victim files their return which then is questioned by the IRS because the IRS received the earlier return which was filed by the thief.

How to avoid Income Tax Identity Theft

To avoid becoming a victim of income tax identity theft, we encourage you to file your tax return as soon as possible.

Identity thieves know that most of us delay in filing our returns and don’t file as soon as possible during the filing season. Because of this, the thieves file a fraudulent claim, knowing that it will probably be accepted by the IRS because the legitimate taxpayer hasn’t filed their return yet. It’s only when the legitimate taxpayer files and the IRS realizes that there are multiple returns filed for one taxpayer that the fraud becomes apparent.

The IRS will contact you

According to The IRS Taxpayer Guide to Identity Theft, be alert to possible identity theft if you receive an IRS notice or letter that states that:

• More than one tax return for you was filed,
• You have a balance due, refund offset or have had collection actions taken against you for a year you did not file a tax return, or
• IRS records indicate you received wages from an employer unknown to you.

Be careful of scams!

Keep this in mind:

1. According to the IRS, they do not initiate contact with taxpayers by email to request personal or financial information.
2. The IRS does not send emails stating you are being electronically audited or that you are getting a refund.
3. This includes any type of electronic communication, such as text messages and social media channels.

If you have questions or are a victim of income tax identity theft, contact us! We are here to help – call us toll free at 1-855-463-4343.

Jane Carpenter is the founder of Maine Identity Services, LLC