Guard Your Finances: Protecting Yourself from Tax Season Scams
Tax season is here, and that opens the door for identity theft and fraud. To keep your financial information safe, here are some tips:
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File Your Taxes Early: Criminals often file fake tax returns using stolen Social Security numbers to snag refunds. If they file first, getting your refund becomes a hassle. This is similar to arriving early at the airport to avoid missing a flight.
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Secure Your Return with an IRS IP PIN: The IRS offers an Identity Protection PIN (IP PIN), a unique six-digit code. It prevents others from filing a tax return using your Social Security number. Apply for an IP PIN on the IRS website. This is particularly important if your Social Security number has been exposed in a data security breach. Keep this number safe and use it only when you file your taxes. Think of this PIN as a password to protect your tax information.
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Watch Out for Tax Scams and Phishing Attempts: Cybercriminals often pretend to be the IRS, tax preparers, or financial institutions. Be wary of phishing emails, suspicious phone calls, and fake websites that try to steal your personal data. The IRS doesn’t contact taxpayers via email, text, or social media. Scammers often use fear tactics, threatening things like arrest or financial penalties, to pressure you. Report phishing attempts by forwarding them as an attachment to [email protected] or use the ‘Report’ button in Outlook.
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Safely Exchange Tax Documents: Avoid sending tax documents as regular email attachments. Instead, use encrypted email services or the secure file-sharing portal your tax preparer provides. If mailing documents, use a reliable courier service with tracking. This approach is like using a secured deposit box.
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Back Up Your Tax Records: Make digital and physical copies of your tax documents. Store electronic copies in an encrypted cloud storage service or an external hard drive. Keep the printed copies in a secure spot. The IRS generally recommends keeping tax records for three years. However, depending on your situation, you might need to keep them longer. If you believe you’re the target of a tax scam, find information provided by the IRS to protect yourself.
