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Identity Thieves Filing Phony Tax Returns

MIAMI (CBS4) - As if tax season weren't stressful enough, tens of thousands of hard working Americans are finding their personal information and federal tax refunds have fallen into the hands of crooks.

Identity theft topped the list of consumer complaints made to the Federal Trade Commission in 2010 with more than 250 thousand complaints.

It's the latest twist on an old problem, identity thieves are stealing a taxpayers personal information to file a false tax return and collect a refund. In 2009, approximately 23-thousand taxpayers reported phony tax returns filed in their names and the IRS anticipates even more will be stolen this year.

So how can you find out if you're a victim? CBS News correspondent Rebecca Jarvis said it's almost impossible to know until it's too late.

"The IRS isn't necessarily going to flag you if this happens. They may send you a letter that says you made more than what you reported on your taxes, that's one sign. Or you go to E-file your tax return on the internet, and you might get a message that says you've already filed, that someone with that Social Security number has already filed, that's a red flag," said Jarvis.

There are some things you can do to protect yourself and your private information.

Don't respond to IRS emails – they never contact taxpayers by email.
Check your tax preparer background/registration if possible.
Keep your tax data secure.
Use safe internet connections.

While there are an increasing number of tax apps for smart phones and software programs for computers, take care, if you lose your phone or throw out your old computer, anyone finding them can potentially steal your personal information.

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