Nearly two-thirds of Americans are concerned about scammers stealing their personal information to file fraudulent tax returns, according to an Allstate Insurance survey. Tax identity theft happens when someone uses another person’s Social Security number to file a false tax return and claim a refund.
Resolving tax refund theft takes an average of 22 months. However, taxpayers can take preventative measures to avoid becoming victims. Financial experts advise filing your return as early as possible to reduce the timeframe that criminals have to file a fraudulent return. The tax filing deadline for income earned in 2024 is April 15th.
The Internal Revenue Service (IRS) also suggests getting an Identity Protection PIN (IP PIN). This unique six-digit number, issued by the IRS, is added to your tax return. Victims of tax fraud are required to include this PIN on their subsequent tax returns. However, taxpayers can proactively request an IP PIN for added security. You can request an IP PIN on the IRS website, and you’ll receive a new one annually by mail.
The internet can be a valuable tool for scammers, but it doesn’t have to be. Practicing safe internet habits can help prevent fraud. Use strong, complex passwords for all your online accounts. If you regularly file your taxes online, avoid clicking suspicious links and consider using anti-virus software.
