Nearly two-thirds of Americans are concerned about falling victim to tax identity theft, according to a recent survey by Allstate Insurance. This type of fraud occurs when someone steals your Social Security number and files a fraudulent tax return in your name, aiming to collect your potential refund.
Resolving tax refund theft can take an average of 22 months. However, taxpayers can take proactive measures to protect themselves. Financial experts advise filing your tax return as early as possible to minimize the period a fraudster has to file a return under your name. The filing deadline for income earned in 2024 is April 15.
The Internal Revenue Service (IRS) also suggests obtaining an Identity Protection PIN (IP PIN). This six-digit number, issued by the IRS, is linked to your tax return and must be included on future returns if you have been a victim of tax fraud. You can proactively request an IP PIN for added security through the IRS website. You will receive a new IP PIN by mail each year.
The Internet can be a breeding ground for scams, but you can take steps to mitigate the risks. Employ strong passwords for all your online accounts. If you regularly file your taxes online, avoid clicking suspicious links. Furthermore, consider using anti-virus software to provide another layer of protection against tax-related fraud.
