CAPE GIRARDEAU, MO (BBB) -- The United States' tax season is here, and so are the scammers. Con artists use the Social Security numbers of unsuspecting Americans to file phony tax returns and steal refunds. One way to protect this information is to use an Identity Protection PIN issued by the IRS. In fact,聽聽if you filed a return online. Be aware of online identity theft with these tips.
How the Scam Works
Online filers that go through the IRS website usually 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.听
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鈥檛 realize they鈥檝e been targeted until they actually file their taxes.
Scammers steal tax information in several ways, such as a聽聽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鈥檚 identities to claim them as dependents.听
How to Avoid Tax ID Theft Scams:
- File early.聽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鈥檛 actually apply to you, contact the IRS office immediately. Another big red flag is if you receive a notice that 鈥渁dditional taxes are owed, the refund will be offset or a collection action is being taken against you for a year you did not file a tax return鈥� (IRS). Contact the聽聽if you have any suspicions that your identity has been stolen.
- Protect your Social Security number.聽Don鈥檛 give out your SSN unless there鈥檚 a good reason, and you鈥檙e sure who you鈥檙e giving it to.
- Research your tax preparer.聽Make sure your tax preparer is trustworthy before handing over your personal information.
- If you are a victim of ID theft,聽consider getting an聽.聽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聽聽for more information.
For More Information
More information is available about tax scams and how to avoid them:聽聽.听
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聽聽or by calling 1-877-FTC-HELP. The FTC also offers a personalized identity theft recovery plan at聽.听
If you鈥檝e been targeted by this or another scam, help others avoid the same problem by reporting your experience聽to聽.
