Identity Theft, The IRS and You

You come home from work one day and pry out all the junk mail from your mail box. Bills. Junk mail. IRS notice. You owe $10,000 in past due tax? This could be a sign of identity theft.
When you think of identity theft, what comes to mind? For most of us, it is a visual of some scumbag opening credit cards and buying flat screen televisions using our names. At the rate retailers are going out of business, this may not be a problem for long, but I digress.

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The new trend in identity theft is not to run up debt. Instead, thieves are selling stolen identities to illegal immigrants or individuals who really would like to leave there old identity behind. In either case, these people assume your identity using addresses you are unfamiliar with. They don’t steal money or credit from you, but they are going to work sooner or later. When they do, they may not file taxes on their earnings.

Now think this through. The IRS receives filings from employers telling it how much individuals made. If you report a figure on your tax return that is less than what the IRS receives from employers, red lights start flashing and auditors come sliding down the emergency audit pole like firemen. Okay, bad example. Regardless, the IRS is going to want to know why you are not declaring all your income and it is really going to want to know why you didn’t pay the full tax due on that income.

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http://www.businesstaxrecovery.com/IRS-identity-theft