Tax season scams & tax identity fraud – Tips to protect yourself

Did you know that the Internal Revenue Service (IRS) identified more than $10 billion dollars in tax fraud and financial crimes in 2021 alone? Over 10 BILLION! Tax season is upon us again and while you gather your docs and paperwork, cybercriminals are working on their schemes to steal your tax refunds, the money you have in the bank, or your identity.

Are there signs you may be a victim of tax identity theft? Of course! Here are a few questions to ponder to see if you have already been a victim:

• Have you ever received a letter from the “IRS” about a tax return you didn’t file?
• Or maybe received a suspicious phone call requesting sensitive personal information?
• Maybe an email instead of a call asking for that information?
• Have you recently had your actual tax return rejected and you were told the reason was because one had already been filed in your name?
• Did you get a tax transcript in the mail that you didn’t request?
• Did you receive an IRS notice about an online account being created in your name, or stating that your account has been accessed or disabled, when you didn’t take these actions?
• Did you get an IRS notice declaring you owe more taxes, or that you’re the target of collection action, when you didn’t file a return for that year?

These are all really big warning signs that you might be a victim of tax identity theft.

Knowing how to protect yourself and your loved ones from identity and money scams during tax season is critical in our world today. Here are a few tips to help:

• Setup and use an IRS PIN: The IRS offers an identity protection PIN for all taxpayers. You must first successfully verify your identity with the agency but the PIN helps prevent criminals from attempting to file a return with your social security number (SSN).
• File as early as you can: The IRS only accepts one single return for each person’s SSN. Submitting your tax return as early as you can will help limit the possibility that a criminal may use your SSN later to file a fake return.
• Use only well-known, secure filing websites: Only trust tax-filing portals that are well known and reputable. Also, make sure your site’s URKL begins with “https:” before the address. This indicates that data transmitted between you and the site is encrypted and secure.
• Take advantage of multifactor authentication (MFA): If you are filing your taxes online, you should only use a tax service provider that allows you to use another factor to verify your identity (not just your username and password), like a one-time security code, to access your account. 
• Always create very strong passwords: Make sure that you create a lengthy, complex password that is different from any other password you use.

How will the IRS contact you?

Always remember that the IRS will NEVER initiate contact with you by phone, email, text, or through social media. Also, the IRS will NEVER call, email, or text you with threats of lawsuits or arrests, nor will they request your taxpayer PIN.

The ONLY way the IRS will contact you is by mail. Any IRS letter will arrive in a government envelope with the IRS seal, it will contain a notice number at the top right corner of the letter, and it will provide the correct contact information for the IRS. 

Think you may already be a victim?

If you think that you are already a victim of tax-related identity theft you need to contact the IRS immediately!

Here are a few ways you can contact them and other steps you may want to take:

• You can call the IRS Identity Protection Specialized Unit (IPSU) at 1-800-908-4490
• Complete IRS Form 14039 (Identity Theft Affidavit) if your electronic return is rejected because of a duplicate filing under your SSN
• Visit IdentityTheft.gov for more information
• Read the Identity Theft Victim Assistance: How It Works guide
• Request a copy of the fraudulent return in your name

Keep in mind: If your Federal return has been compromised, your state return may also. Be sure to contact your state tax department as soon as possible.

Criminals work hard on their schemes and we all need to work just as hard to protect ourselves and those we love from becoming their next victim.

Have questions or need help with your taxes? Contact a tax professional or the IRS.

Need a hand with your technology or have questions about passwords? Contact TeCHS!