Taxpayer Identity Theft Is Soaring

The IRS is grappling with soaring taxpayer identity theft.

Unsuspecting victims are filing for their refunds, and learning the money had been paid to someone using the same name and Social Security number.

The Associated Press has obtained a Government Accountability Office report showing there were more than 248,000 identity theft incidents in 2010. In 2008, the number was 51,700.

After learning they have been victimized, taxpayers must then wait for the IRS to determine which filing was legitimate. However, once fraud is discovered, the agency marks the account and carefully screens future submissions.

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