Tax season is approaching, and many people look forward to getting their tax refund to give them some financial relief.
You may think you’re ready for tax season once you have all your important documents but, if you’re unfamiliar with tax identity theft, you may not be as prepared as you think. Scammers are on the hunt to steal your identity and cheat you out of your refund.
These thieves can get your personal information by digging through your mail, phishing emails, or a business’s data breach.
Once they have your personal information, the fraudsters will file a phony tax return with the IRS using your personal information to collect your refund. Most victims of this scam only become aware of the fraud after their tax return is rejected by the IRS as a duplicate filing.
Once they have your personal information, the fraudsters will file a phony tax return with the IRS using your personal information to collect your refund. Most victims of this scam only become aware of the fraud after their tax return is rejected by the IRS as a duplicate filing.
You’ll also be affected by this scam if someone uses your compromised Social Security Number for employment or claims your child as a dependent on a tax return.
Scammers may also try to pose as an IRS agent by claiming that you owe taxes to threaten you with possible jail time and extort you out of money or gift cards.
Here are some tips to protect yourself against tax-related identity theft.
- File your tax return as soon as possible.
- Avoid using a public Wi-Fi network if you are e-filing your tax return, make sure you use a secure internet connection.
- Research your tax preparers before hiring them and handing over your personal information.
- Check your credit scores regularly to make sure a fraudulent account hasn’t been opened up in your name.
If you or someone you know has become a victim of tax identity theft, you’ll need to file a report with the FTC and IRS at IdentityTheft.gov. Here are some other resources available to help stop further fraud if you are a victim of tax identity theft:
- The IRS’s Taxpayer Guide to Identity Theft lays out some instructions about what to do and who to contact if you become a victim of identity theft.
- The FTC lists steps to take if this happens to you at Tax-Related Identity Theft.
We hope this article helps you better protect yourself from scammers. Share these tips with your loved ones and friends or send them this article.
