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The Internal Revenue Service, state tax agencies and the tax industry are working together as the Security Summit to urge tax professionals to learn the signs of data theft in order to quickly protect their clients. Tax professionals must contact the IRS immediately if an identity theft issue is suspected, while also contacting insurance or cybersecurity experts to assist them with determining the cause and extent of the loss.
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The IRS said to look for these red flags:
- Client e-filed returns are rejected because their Social Security number was already used on another return
- More e-file acknowledgments are received than returns filed
- Clients responded to emails the tax pro didn’t send
- Slow or unexpected computer or network responsiveness such as software or actions take longer to process than usual, computer cursor moves or changes numbers without touching the mouse or keyboard or being unexpectedly locked out of a network or computer
Tax professionals should also watch out if their clients report receiving the following:
- IRS Authentication letters (5071C, 6331C, 4883C, 5747C) even though they haven’t filed a return
- A refund even…
