10 Identity Theft Prevention Tips All Taxpayers Should Know

Most of us pay taxes and our tax return documents contain plenty of valuable information identity thieves would love to steal and abuse. One thing criminals can do with your stolen personal information is fraudulently cash your tax refund checks.

How can taxpayers avoid this and other tax-related fraud? The U.S. Internal Revenue Service (IRS) provides these 10 tips for taxpayers:

"1. The IRS does not initiate contact with a taxpayer by e-mail.

Simply, if you receive email messages that appear to be the IRS asking your confirm your information, you now know these messages are phishing scams. What should taxpayers do:

"2. If you receive a scam e-mail claiming to be from the IRS, forward it to the IRS at [email protected].

The third tip is a warning about all of the different ways criminals can steal your tax and personal information:

"Stealing your wallet or purse... Posing as someone who needs information about you through a phone call or e-mail... Looking through your trash for personal information, Accessing information you provide to an unsecured Internet site."

This blog includes suggestions about using a locking postal mailbox and shredding documents, bills, and statements with your sensitive personal information. All online users, including taxpayers, must learn how to recognize a phishing website. Identity thieves will create real-looking but bogus websites to trick you into disclosing your tax, financial, and sensitive personal information:

4. If you discover a website that claims to be the IRS but does not begin with ‘www.irs.gov’, forward that link to the IRS at [email protected]."

All online users, including taxpayers, need to learn how to recognize a secure website. This is important for both wired and wireless Internet connections. To learn more, visit the Onguard Online website operated by U.S. Federal Trade Commission (FTC). This blog has covered tips on how to protect yourself from sidejacking when using a public wireless Internet connection.

Most people know that your Social Security number is a critical piece of personal information you must protect from theft and abuse. Here's why:

"6. If your Social Security number is stolen, another individual may use it to get a job. That person’s employer may report income earned by them to the IRS using your Social Security number, thus making it appear that you did not report all of your income on your tax return."

This blog covered the consequences when another person uses your Social Security number. The consequences go far beyond taxes. Here are ways you will know if another person is using your Social Security number:

"7. Your identity may have been stolen if a letter from the IRS indicates more than one tax return was filed for you or the letter states you received wages from an employer you don’t know. If you receive such a letter from the IRS, leading you to believe your identity has been stolen, respond immediately to the name, address or phone number on the IRS notice."

Many consumers have been the victims of data breaches, where an employer or prior employer has exposed your sensitive personal information to the public via loss or theft. This happened to me when a former employer lost my sensitive personal information. Thankfully, my credit and tax records have not been abused. If you think that your tax information may be abused, the IRS recommends:

"8. If your tax records are not currently affected by identity theft, but you believe you may be at risk due to a lost wallet, questionable credit card activity, or credit report, you need to provide the IRS with proof of your identity. You should submit a copy of your valid government-issued identification – such as a Social Security card, driver’s license, or passport – along with a copy of a police report and/or a completed Form 14039, Identity Theft Affidavit. As an option, you can also contact the IRS Identity Protection Specialized Unit, toll-free at 800-908-4490. You should also follow FTC guidance for reporting identity theft at www.ftc.gov/idtheft."

When people ask me what to do after their wallet has been lost or stolen, this is one reason why I always suggest that they file a police report with local law enforcement and notify their state motor vehicles registry.

"9. Show your Social Security card to your employer when you start a job or to your financial institution for tax reporting purposes. Do not routinely carry your card or other documents that display your Social Security number.

The tenth tip is for consumers should visit the IRS Identity Theft and Your Tax Records page at the IRS website to learn more to protect your tax records and information.

Comments

[shredding San Antonio]

Learning all these things can really help you become more aware of protecting your personal information. These tips must be taken into consideration to prevent other people from stealing and using them. Make a report if you have noticed that there is something wrong so that immediate actions can be made.