Straight Talk: File taxes early, use PIN to avoid ID theft
Better Business Bureau serving Canton Region and Greater West Virginia offer tips and advice for consumers to avoid fraudulent practices.
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 the Identity Protection PIN issued by the IRS; if you filed previously and lost your PIN, the IRS can help.
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.
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 do not realize they have been targeted until they file their taxes.
Scammers steal tax information in several ways, such as a phishing scam (bit.ly/Phishingscams), a corrupt tax preparation service, or information 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 and contact IRS immediately if you receive any of the following – receiving written notice from IRS about duplicate return; receiving IRS notice stating you received wages from someplace you never worked or receiving other notices that do not apply; receiving notice that “additional taxes are owed, your refund will be offset, or a collection action is being taken against you for a year you did not file a tax return”;
• Protect your Social Security number. Do not give out your SSN unless there is 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.
• Use your Identity Protection PIN. This is a six-digit number, which confirms your identity in addition to your Social Security number. Once you apply, you must provide the IP Pin each year when you file your federal tax returns. Visit IRS.gov for more information.
Visit the IRS’ Identity Theft Central at IRS.gov/identity-theft-central if you have any suspicions that your identity has been stolen.
For more information
More information is available about tax scams and how to avoid them, visit: BBB.org/all/taxtips. 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 at ftc.gov/complaint or by calling 1-877-FTC-HELP. The FTC also offers a personalized identity theft recovery plan at identitytheft.gov. f you have been targeted by this or another scam, help others avoid the same problem by reporting your experience to BBB.org/scamtracker.
This article originally appeared on The Repository: Straight Talk: File taxes early, use PIN to avoid ID theft
