Beware of tax identity theft, how to prevent it
Imagine finishing your tax return and expecting a refund, only to find out someone else has already claimed it. Identity theft can happen any time, but during filing season, tax identity theft is particularly prevalent. It takes a while for identity theft to be discovered, and the filing season can bring this to light.
Tax identity theft is the result of a stolen personally identifiable information (PII) used by thieves to file taxes under false identity.
The Better Business Bureau of Greater Houston and South Texas offers these tips to help prevent tax identity theft:
Research tax preparation services carefully. Check BBBHouston.org for the latest Business Profile before you engage a company for the first time.
Complete your return as soon as you can. Scammers usually file fast so they can beat the real taxpayer and get the refund. The sooner you file, the less likely a scammer can be successful filing a fake return in your name.
Pay attention to official communications and know the signs. You could find out when trying to file a tax return — the IRS notifies you that another return using your Social Security Number (SSN) has already been filed. If you receive written notice from the IRS about a duplicate return, respond promptly. You may also receive an IRS notice stating that you’ve received wages from somewhere you never worked, or receive other notices that don’t actually apply to you. Another big, red flag is if you receive a notice that “you owe additional tax, refund offset or have had collection actions taken against you for a year you did not file a tax return” (IRS). Contact the IRS at IRS.gov if you have any suspicions that a return has been filed in your name. Identify fake communications. Scammers manipulate taxpayers by pretending to be IRS agents calling about past due taxes. Or they may contact you to tell you that your identity has already been compromised, using the fear of one scam to commit another. The IRS always sends written communications first, so if you receive a call or email before an official letter, it’s probably from a scammer. Be especially cautious of anyone who threatens you or claims you must act immediately. The IRS will not do that.
Understand spam. Know how to differentiate a spam email from an email that is authentic and protect yourself from phishing. If you receive an email from the IRS, do not reply to the sender or click on links or attachments included in the email.
Protect your privacy. The internet has increased convenience when it comes to shopping, banking and other everyday activities. This online accessibility means your personal information can be compromised by a data breach, so take precautions. Understand why you are being asked for your personal information and ask questions about why it is needed.
Keep your computer up to date. Run software updates and virus checks regularly to keep security up to date.