Get Started Now! Get Your Credit Repair Do It Yourself!!

Protecting identity when filing taxes –

New IdentityTheft Scam

How the Scam Works

Online filers that go through the IRS website and in most cases expect a refund. Instead, a written IRS notice arrives in the mail, stating that more than one tax return was filed using your Social Security number. 

What happened? Scammers got hold of personal information, typically the account holder’s Social Security number, address, and birth date. They filed your return early and received your refund before you even got around to filing. Tax ID theft is a particularly sneaky con, because victims typically don’t realize they’ve been targeted until they actually file their taxes.

Scammers steal tax information in several ways, such as a phishing scam, a corrupt tax preparation service, or the information was exposed in a hack or data breach. Sometimes tax scammers file in the name of a deceased person or steal children’s identities to claim them as dependents. 

How to Avoid Tax ID Theft Scams:

  • File early. The best way to avoid tax identity theft is to file your taxes as early as possible, before a scammer has the chance to use your information.
  • Watch out for red flags. If a written notice from the IRS arrives in the mail about a duplicate return, respond promptly. Or, if an IRS notice arrives stating you received wages from somewhere you never worked, or receive other notices that don’t actually apply to you, contact the IRS office immediately. Another big red flag is if you receive a notice that “additional taxes are owed; the refund will be offset or collection actions are being taken against you for a year you did not file a tax return. Contact the IRS if you have any suspicions that your identity has been stolen.
  • Protect your Social Security number. Don’t give out your SSN unless there’s a good reason and you’re sure who you’re giving it to.
  • Research your tax preparer. Make sure your tax preparer is trustworthy before handing over your personal information.
  • If you are a victim of ID theft, consider getting an Identity Protection PIN (IP PIN). This is a six-digit number, which, in addition to your Social Security number, confirms your identity. Once you apply, you must provide the IP Pin each year when you file your federal tax returns. Visit IRS.gov for more information.

For More Information

More information is available about tax scams and how to avoid them:  BBB Tip on Tax Scams

If you are the victim of tax identity theft in the U.S., contact the IRS at 1-800-908-4490 and consider filing a complaint with the Federal Trade Commission (FTC) at ftc.gov/complaint or by calling 1-877-FTC-HELP. The FTC also offers a personalized identity theft recovery plan at identitytheft.gov

If you’ve been targeted by this or another scam, help others avoid the same problem by reporting your experience to BBB.org/ScamTracker.

About BBB: BBB serving Central Virginia serves Richmond, the Tri-Cities, Charlottesville, and Fredericksburg, as well as 42 surrounding counties from Fauquier to Mecklenburg and Northumberland to Amherst. The nonprofit organization was established in 1954 to advance responsible, honest, and ethical business practices and to promote customer confidence through self-regulation of business. Core services of BBB include business profiles, dispute resolution, truth-in advertising, scam warnings, consumer and business education, and charity review.

Source: on 2021-01-27 10:22:30

Read More At Source Site

Add a Comment

Your email address will not be published. Required fields are marked *

2 + 6 =