In 2023, the IRS flagged over 1million tax returns as fraudulent. As tax seasons rolls around, here are tips to protect yourself:
Beware of Phishing
Scammers may impersonate the IRS and send fake phishing emails to trick consumers into revealing sensitive personal information like Social Security numbers or bank account details. The IRS will never initiate contact with tax payers by email, text message, or social media to request personal information. If this is a legitimate request, you’ll receive a letter in the mail.
Request a PIN from the IRS
An Identity Protection PIN is a six-digit code that safeguards your Social Security number or individual taxpayer identification number from being used by someone else to file a tax return. This PIN is only known to you and the IRS, and it assists the IRS in confirming your identity when you submit your tax return, whether electronically or on paper. A PIN can be requested online from the IRS.
File Your Tax Returns Early
Criminals may file fraudulent tax returns using your information to inflate refund amounts and direct them to their own accounts, leaving you unaware until you file.
When you file early, the IRS processes your return sooner, and your information is locked in their system. If someone else tries to file a return using your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) after you’ve already filed, the IRS will detect the duplicate filing and flag it as suspicious. This helps prevent fraud before any refunds are issued.
Keep sensitive information secure
Scammers may file false tax returns using stolen identities to claim fraudulent refunds. This can happen if someone gains access to your personal information through phishing or data breaches.
Monitor your credit report by regularly checking for any signs of identity theft or fraud.
