The IRS anticipates issuing identity protection personal identification numbers (IP PINs) to approximately 500,000 individuals for the 2013 filing season. That represents a significant increase from the 250,000 IP PINs issued in 2012.
According to the Federal Trade Commission, identity theft has topped the list of consumer complaints for 12 years in a row. Identity thieves are stealing documents from employers, nursing homes, hospitals and other organizations. In some cases, identity thieves have sought employment with nursing homes, hospitals and other employers intending to steal identifying information.
The National Taxpayer Advocate Service has advised taxpayers to be alert to possible identity theft if they receive an IRS notice or letter that states they have filed more than one tax return, or have received wages from an employer they have not worked for. The National Taxpayer Advocate Service tracked a 600-percent increase in identity theft from 2008 to 2012. The sheer volume of identity theft cases makes it challenging for the IRS to keep up with the problem. In 2011, using data mining, the IRS created automated filters to spot fraudulent refund claims.