Tax Season Scams
As tax season approaches, safeguarding your personal information becomes paramount to prevent identity theft and ensure your tax refund isn't compromised.
Here are essential steps to protect yourself:
1. File Early
Submitting your tax return promptly can deter fraudsters from filing a false return under your name. Early filing not only reduces the risk of identity theft but also allows for quicker processing and potential refunds.
2. Obtain an Identity Protection PIN (IP PIN)
An IP PIN is a six-digit number assigned by the IRS to eligible taxpayers, adding an extra layer of security to your tax account. This unique identifier helps prevent unauthorized individuals from filing a tax return using your Social Security Number (SSN). You can request an IP PIN through the IRS website.
3. Recognize and Avoid Scams
Be vigilant about unsolicited communications:
Phishing Emails and Calls: The IRS does not initiate contact via email, text messages, or social media to request personal or financial information. If you receive such a message, do not respond or click on any links.
Ghost Preparers: Be cautious of tax preparers who refuse to sign your return or provide a Preparer Tax Identification Number (PTIN). These "ghost preparers" may be fraudulent and can jeopardize your tax filing.
4. Secure Your Personal Information
Protect documents that display your SSN:
Physical Security: Store your Social Security card and other sensitive documents in a safe place. Avoid carrying them unnecessarily.
Digital Security: Use strong, unique passwords for online accounts, and enable multi-factor authentication when available to add an extra layer of protection.
5. Monitor Financial and Tax Accounts
Regularly review your financial statements and credit reports for unauthorized activity:
Credit Reports: Obtain free annual credit reports from the major credit bureaus to check for unfamiliar accounts or inquiries.
IRS Notices: Be alert for IRS communications regarding unfiled returns or discrepancies, which could indicate fraudulent activity.
6. Report Suspected Identity Theft Promptly
If you suspect your personal information has been compromised:
IRS Notification: Complete Form 14039, Identity Theft Affidavit, and submit it to the IRS to alert them of potential identity theft.
Federal Trade Commission (FTC): Report the incident at IdentityTheft.gov, where you can receive a personalized recovery plan.
Credit Bureaus: Place a fraud alert or credit freeze on your credit reports to prevent new accounts from being opened in your name.
By proactively implementing these measures, you can significantly reduce the risk of identity theft during tax season and ensure your personal information remains secure.
