Protect Yourself from Annual Tax Scams
As tax season goes on, scammers are setting their traps to steal personal information and tax refunds. Here are some tips to keep your identity safe:
Be naturally suspicious. Understand that there are people out there trying to steal identifying information. Be suspicious of anyone asking for items such as your Social Security number (SSN). Even when a trustworthy source asks for your SSN, ask what it’s being used for and refuse all unnecessary requests.
File your tax return as soon as possible. A popular tax scam is for identity thieves to file a fake tax return on your behalf and deposit the refund into their own account, all before you get the chance to file your return. You close the window of opportunity for scammers by filing your return with the IRS right away.
Shred (don't just crumple) your documents. Get in the habit of shredding all sensitive paperwork before it's thrown out to keep personal information from falling into the wrong hands. If you don't own a shredder, contact your bank or other local vendors that offer free shredding services on specific days.
Never reply to calls or emails from the IRS. The IRS will never initiate contact via telephone or email. If you are the recipient of a suspicious phone call or email from someone claiming to be an IRS agent, do not provide them with ANY personal information. If you receive a suspicious email, forward it to phishing@irs.gov and do not open any links.
Periodically check credit reports. The three major collection agencies (Experian, Equifax and TransUnion) are legally required to provide you with a free credit report each year. Take advantage of this service and review the reports annually. Correct any errors and use this report to monitor your accounts for any suspicious activity.
Handle your personal information wisely. Being careless with information such as Tax ID numbers, account numbers, and passwords can cause huge headaches and financial obstacles if your information is stolen. If you think you are a victim of a tax scam, alert the IRS right away and visit identitytheft.gov for more information.
