Protect yourself from ID theft this tax season
The Internal Revenue Service calls tax refund fraud its No. 1 type of fraud.
Last year, more than 236,000 tax returns processed were deemed fraudulent because of identity theft, and nearly $1.2 billion in refunds from those fraudulent returns were blocked, according to the Treasury Inspector General for Tax Administration.
As a result, the IRS more than doubled the number of workers assigned to identity-theft cases since 2011, to about 3,000 in 2014.
In a tax refund scheme, identity thieves use stolen personally identifiable information to file victims’ tax returns and then steal their refunds. Since tax season just around the corner, it’s important to be aware that scammers aren’t far behind looking to rip off their next victim.
Usually, an identity thief uses a legiti- mate taxpayer’s identity to fraudulently file a tax return and claim a refund. Generally, the identity thief will use a stolen Social Security number to file a forged tax return and attempt to get a fraudulent refund early in the filing season.
The victim may be unaware that this has happened until they file their tax return later in the filing season and discover that two returns have been filed using the same Social Security number.
There are steps you can take to minimize your risk of falling victim to a tax refund thief. BBB of Greater Houston and South Texas offers these tips:
Never carry your Social Security card or any document(s) with your Social Security number on it.
Don’t give a business’ staff your Social Security number just because they ask — only when required. Protect your financial information. Review your credit report every 12 months.
Secure personal information in your home.
Protect your personal computers by using firewalls, anti-spam/virus software, update security patches, and change passwords for Internet accounts.
Don’t give personal information over the phone, by fax, through the mail or on the Internet unless you have initiated the contact or you are sure you know who you are dealing with.
“Know that the IRS does not initiate contact with taxpayers by email to request personal or financial information,” the agency stated. “This includes any type of electronic communication, such as text messages and social media channels.”
Be alert to possible identity theft if you receive a notice from the IRS or learn from your tax professional that:
More than one tax return for you was filed;
You have a balance due, refund offset or have had collection actions taken against you for a year you did not file a tax return;
IRS records indicate you received more wages than you actually earned; or
Your state or federal benefits were reduced or cancelled because the agency received information reporting an income change.
If believe you may be a victim of identity theft, contact the IRS Identity Protection Specialized Unit at 800-9084490 immediately to secure your tax account.
The Better Business Bureau is an unbiased nonprofit organization which sets and upholds high standards for fair and honest business behavior. Every year, more than 87 million consumers rely on BBB Business Reviews and BBB Wise Giving Reports to help them find trustworthy businesses and charities across North America. For more information or to check the reliability of a company and find trustworthy businesses, visit www.bbbhouston.org or give us a call at 713868-9500. Monica Russo is director of investigations and media relations with the Better Business Bureau of Metropolitan Houston and South Texas. Send questions regarding homeowner issues to Monica Russo, Better Business Bureau, 1333 West Loop South, Suite 1200, Houston, TX 77027, or e-mail her at mrusso@bbbhou.org. Include mailing address and phone number on letters and emails.