How to Protect Yourself from Tax Identity Theft
According to an Allstate Insurance survey, nearly two-thirds of people are concerned about scammers stealing their personal information to file fraudulent tax returns. Tax identity theft is when someone uses your Social Security number to file a false tax return and collect the refund. Resolving tax refund theft takes an average of 22 months.
Financial experts suggest filing your return as early as possible to reduce the timeframe a fraudster has to file in your name. The deadline to file a tax return for income earned in 2024 is April 15.
The Internal Revenue Service (IRS) recommends obtaining an Identity Protection PIN (IP PIN). This is a six-digit number issued by the IRS that you attach to your tax return. If you’ve been a victim of tax fraud, you are required to use the IP PIN on all tax returns going forward. However, taxpayers also have the option to request an IP PIN proactively for added security. You can request an IP PIN via the IRS website, and you’ll receive another one annually by mail.
Maintaining good internet habits can aid in preventing fraud. Use strong, unique passwords for all online accounts, and ensure your computer is protected by updated anti-virus software. Be careful about clicking suspicious links.
