I wonder sometimes. Some changes just baffle me.

We recently changed the independence standards because a few could never get their arms around compilations as an attest service, but not an assurance service.

Now, we are changing the compilation and review standards to allow a member to add an emphasis of a matter paragraph in a compiled statement without disclosures.

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As a follow-up to my last post on the apparent wide-spread scam that likely has poached millions upon millions from the U.S Treasury, one of my partners came up with the list of actions to take if you are one unlucky few who had your identity stolen and used to file a false refund claim.

Next steps; act quickly
*         IRS – If you are a victim of this scam, you’ll note the IRS 5071C letter provides instructions about contacting the IRS through its identity theft website or by phone at (800) 830-5084 to let officials know you did not file the return referenced in their letter. If you are a victim, you may not be able to electronically file your return this year since a return with your Social Security number has already been filed. You’ll need to file a paper return and attach an IRS 14039 Identity Theft Affidavit to describe what happened. Attach copies of any notices you received from the IRS, like the 5071C letter. Be sure to let your tax preparer know if this happens to you. Verify with the IRS and your tax preparer where to mail your paper tax return, based on the type of return you are filing and your geographic area.
If you have not received a notification from the IRS but believe your personal information may have been used fraudulently or are concerned about whether you may have been victimized, call the IRS Identity Protection Specialized Unit at (800) 908-4490. Find more information from the IRS, including forms, at the IRS website.
*         Arizona Medical Association – We have alerted the Arizona Medical Association of this situation.  Chic Older, the Executive Director, is asking that all physicians impacted by this scam email him to inform him of the fraud.  His email is chicolder@azmed.org<mailto:chicolder@azmed.org>. You may also call the Association at  800-482-3480.
*         Office of the Arizona Attorney General – Physicians affected should contact the Arizona Attorney General’s Office at 520-628-6504 or file a consumer complaint online at https://www.azag.gov/. Their website also lists steps for identity theft victims to take at https://www.azag.gov/identity-theft.
*         Federal Trade Commission (FTC) – File a complaint with the FTC here<http://www.ismanet.org/go/FTC40714>. This not only helps the FTC identify patterns of abuse, but the printed version becomes your Identity Theft Affidavit. Along with a police report, that affidavit becomes your Identity Theft Report, which you will need. The FTC recommends other immediate steps and provides helpful information here<http://www.ismanet.org/go/FTC40714B>.
*         Police report – Consider filing a report with the local police where you reside. Bring all documentation available, including any state and federal complaints you filed. This will likely be necessary if there is financial account fraud as a result of the identity theft. However, if the only fraud is tax fraud, the police report will be necessary only if requested by the IRS.
*         Social Security – Call the Social Security Administration’s fraud hotline at (800) 269-0271 to report fraudulent use of your Social Security number. In case your number is being used for fraudulent employment, you can also request your Personal Earnings and Benefit Estimates Statement here<http://www.ssa.gov/> or call (800) 772-1213. Check it for accuracy.
*         U.S. Department of Justice (DOJ) – Consult the DOJ website<http://www.ismanet.org/go/DOJ40714> for additional information.

If our practice is any indication, tax refund fraud from identity theft likely skyrocketed so far in 2014. Last year the IRS reported around $4 billion in suspected refund fraud. I suspect that number could triple. Last year we had less than a handful of returns rejected because the social security number was previously used to file a return for the year. I am not talking about dependent being claimed by the other parent or spouse who didn’t change the name type rejects, I am talking about the ‘someone stole and used the number to file a return’ type problem.

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(1) Facebook.