Tax Return Fraud: What To Do If You’re A Victim In California

Every year, thousands of California residents become victims of tax fraud. Whether it’s having your identity stolen or filing a false tax return, these crimes can have serious consequences. Fortunately, there are concrete steps you can take to protect yourself and seek justice. Let’s take a look at what tax fraud is, how to spot it, and what to do in extreme situations. We’ll also tell you how the KAASS LAW firm can help you in this situation.

What is Tax Fraud?

Tax refund fraud is a felony. Attackers use someone else’s personal information to illegally obtain tax refunds.
There are cases where scammers:

1. Forge employer documents (such as W-2s).
2. Use false deductions, credits, or dependents.
3. commit identity theft and sell it on the darknet.

It is especially important to be careful if you live in California. This state leads the United States in the number of tax crimes committed.

Signs That You May Be A Victim Of Tax Fraud

You may not even realize that someone has already managed to file a tax return on your behalf.
Here are some factors to look out for:

1. The IRS rejects your return because it has already been filed.
2. You receive a notice that a new tax account has been opened that you did not create.
3. You receive a tax form for income you did not receive.
4. You are called in for an audit when you are sure you have filed everything correctly.
5. You notice unexpected changes in your credit history.

If you experience any of these signs, you should seek help immediately.

What To Do If You’re a Victim of A Tax Crime?

1. Contact the IRS

The first thing you should do is contact the Internal Revenue Service (IRS) immediately. You can:

1. Call the Identity Protection Specialized Unit at 1-800-908-4490
2. Complete Form 14039 – Identity Theft Affidavit, which informs the IRS that your identity has been stolen.

This form is especially important – it triggers an internal investigation and helps close the fake account.

2. Notify your local police

Even if a tax crime is committed online, file a police report. This is especially important in California, where tax crimes are often linked to other types of fraud, such as credit fraud. You can also use the police report as evidence when you file complaints with other agencies.
3. Contact the Federal Trade Commission (FTC)

The FTC maintains a centralized resource for victims of identity theft. There you can:

1. Report the crime
2. Get a personalized recovery plan
3. Download sample letters for banks and credit bureaus

Freezing your credit is an important step

After contacting the IRS and the police, it is highly recommended that you freeze your credit history. At all three major credit bureaus:

1. Experian
2. TransUnion
3. Equifax.

This step will prevent new credit, credit cards and loans from being processed in your name. A credit freeze is free in California. You can also request a fraud alert, which alerts lenders to possible fraudulent activity on your profile.

Why is it important to act quickly?

The sooner you act, the less you have to lose. In addition to losing your tax refund, tax fraud can also cause you to:

1. Lower your credit score.
2. Make it more difficult to file future tax returns.
3. Cause legal problems.

Some consequences can last for years. The key to minimizing the damage is to seek help early. In complex cases, where the fraud has resulted in additional criminal charges, having an experienced attorney can be a powerful factor.

Tips to prevent tax fraud in the future

Important: If you suspect that you have become a victim of tax crime, then act now—do not delay. In other words, immediate action is crucial.