Scam of the day – March 7, 2017 – Prisoner convicted of income tax identity theft while in prison

Daniel Aaron Stone has pleaded guilty to charges related to income tax identity theft and will be sentenced later this year.  However, it is unlikely that Stone’s address will change once he is sentenced because he is already serving time in federal prison and was doing so at the time he committed his new crimes.

This is just an example of how easy it is to accomplish income tax identity theft.  All it takes is the names and Social Security numbers of the intended victims.  Using this information, it is a simple matter to electronically file a fraudulent income tax return with phony W-2 information.  If the phony return is filed before the victim files his or her income tax return, there is a good chance that the IRS will send the requested refund to the income tax identity thief.

TIPS

Try as it may, the IRS is having a difficult time stopping income tax identity theft.   Along with protecting your personal information, particularly your Social Security number as much as you can, the best thing you can do to avoid becoming a victim of income tax identity theft is to file your income tax return early.  Income tax identity theft can only work when the criminal is able to file an income tax return using your name and Social Security number before you file your own legitimate income tax return so consider filing as early as possible.