Identity theft has become a worldwide problem, affecting many consumers and damaging their credit scores, their bank accounts, and even their employment. But did you know that identify theft can also cause trouble for you at tax time? Unfortunately, falling victim to identity thieves can make tax filing a real hassle, especially if you're expecting a sizable refund. Here's a primer on what you can do if identity theft interferes with your tax filing. 

How Identity Theft Can Affect Tax Filing

When your identity is stolen, typically your Social Security number is one of the most vital pieces of information that is taken. A thief can use this number to open a bank account in your name, cancel your credit cards or get new ones, or buy a new piece of property. He or she can also use your Social Security number to file a tax return in your name. If this happens, the thief could potentially get the refund you were expecting. Then, when you attempt to file your legitimate return, the IRS will refuse to accept it, stating that your Social Security number has already been used on a return that year.

Ways to Prevent Identity Theft

To prevent this from happening to you, be vigilant about guarding your personal information. Leave your Social Security card at home and never take it out of the house if you can help it. If your purse or wallet is stolen, cancel all of your credit and debit cards immediately. Be leery of any person who calls you on the phone and claims to be an IRS agent. The IRS will almost never contact you by phone or email; an official correspondence from the agency typically comes by the postal delivery service only.

If Your Identity is Stolen

If you try to file your return, and the IRS notifies you that your Social Security number has already been used, then it's likely that you have already become a victim of identity theft. In this case, you'll need to contact the IRS directly by calling its Identity Protection Specialized Unit. Afterward, IRS agents will begin investigating your account so that you can file your return properly and claim tax refunds. You should also take other identity control measures such as cancelling your credit cards and changing any online passwords.

Having your identity stolen can cause real issues with your taxes when filling your returns. If you fall victim to this crime, notify the IRS right away so that you won't be held responsible for another person's actions.