New Jersey State Tax Fraud & Data Breach

Prevention

Taxation University

609.292.1132

taxation.university@treas.nj.gov

New Jersey State Tax Fraud & Data Breach Prevention

• Steps for Your Client to Report Identity Theft

• Reporting Tax Professional Data Breaches to the State

• General Resources for You

Steps for Your Client to Report Identity Theft

Identity Theft vs. Use of Identity

Identity Theft

• Filing a Fraudulent Return Under Another’s Social Security Number

• Reporting False Income

• Intent of Receiving an Illegal Refund

Contact Division of Taxation

Use of Identity

• Gaining Employment Under Another’s Social Security Number

• Reporting the Income Earned From That Employment Under The Correct ITIN

Contact Department of Labor

Completing the Identity Theft Declaration Form (IDT-100)

• Can Only Be Filed By Your Client• Form is for the Individual, not the Tax Professional

• Check Box to Indicate Either:• I am a Victim of Identity Theft

Or

• Experienced a Non-Tax-Related Identity Theft• At Risk in the Future Due to: Lost/Stolen Items

Steps for Your Client to Report Identity Theft

1. Notify the State• Submit the Identity Theft Declaration Form (IDT-100)

• Online: www.njtaxation .org

2. Notify the IRS

3. Review State Police’s Victim’s Reference Guide • Provides Additional Steps to Take

Note: Notifying the IRS & Police Does Not Automatically Notify the State.

Your Client Must Also Notify the Division by Completing the IDT-100

After Submitting the IDT-100

• If IDT-100 is Filed to be Proactive• The Account is Coded and Noted

• The State Does Not Provide a Pin like the IRS

• A Letter is Sent

• If IDT-100 is Filed for Fraud• If a Fraudulent Return Exist- Removed from Your Client’s Account

• A Letter is Sent with Information to Contact the Division

• All Accounts Reviewed for the Next Three Years

Filing the New Jersey State Return After Submitting the IDT-100

Filing Your Client’s Return

• To Be Proactive = File NJ-1040 Electronically

• Possible Fraud = File NJ-1040 by Paper• Including Supporting Documents (e.g. W-2s)

Reporting Tax Professional

Data Breaches to the State

Data Breaches

• Stolen Data• Social Security Numbers

• Driver’s License

• Credit Card or Bank Account Numbers

• W-2 Information

• Other Data Breach Methods• Loss or theft: Portable Drives, Files, etc.

• Unintended Disclosure

We’re Here

to Help You

Protect

Your

Clients!

Steps for You to Report Data Breaches to the State of New Jersey

1. Notify the Federation of Tax Administrators (FTA)• Email: StateAlert@taxadmin.org

2. Contact the State’s Office of Criminal Investigation (OCI)• Phone: 609-588-5017

3. Notify the IRS

Steps for You to Report Data Breaches to the State of New Jersey

4. Visit State Police’s Cyber Crimes Unit Website• Follow Instructions for “Business Reporting a Breach of Security”

5. File a Complaint with the FBI Internet Crime Complaint Unit

Note: Notifying the IRS & Police Does Not Automatically Notify the State. You Must Contact the Division’s OCI Unit

Procedures After You Notify The State

1. OCI Works with You to Investigate the Breach• How Many Clients were Affected?

2. OCI Determines the Best Plan to Protect Your Clients • Affected Account will be Coded for Three Years

• OCI will Review Each Return with You Line by Line• Refunds Released after Verification

Note: The Faster You Notify the State of New Jersey, the Better!

Filing the New Jersey State Return

• If the Federal Return is Rejected• File State Return by Paper

• If Filing Separately from the Federal Return• File State Return Electronically

Resources For You

Additional Resources

• Federal Bureau of Investigations

• Internet Crime Complaint Center (IC3)

• Identity Theft Prevention Act: A Guide for Businesses

• Protecting Personal Information: A Guide for Businesses

• Federation of Tax Administrators

Tax Practitioner Contact Information

• New Jersey Tax Practitioner Hotlines

• Income Tax - (609)633-6657

• Business Inquiries - (609)633-6905

• Regular Business Hours

• Practitioner Priority E-mail• “Contact Us” Page

• Choose “Tax Practitioner” Link