Identity theft results when someone uses another person’s name, Social Security number, or other identifying information without permission, to commit fraud or other crimes. It can take a victim months and lots of money to rectify the problems resulting from identity theft. The IRS has provided guidance to deter identity theft and what to do if it happens.
Do not respond to any email purported to come from the IRS:
You can report suspicious contacts you receive to the IRS at [email protected].
The IRS also offers these tips to minimize the chances of becoming a victim of identity theft:
Source: IRS Publication 4535, Identity Theft Protection and Victim Assistance
A retirement account to which up to $4,000 (or $5,000 if you are 50 or over) may be contributed for 2007, but deductions for the contribution are restricted if you are covered by a company retirement plan. Earnings accumulate tax free.