Here we go! It’s time to start collecting all the information we need to file our annual taxes. What did we earn? Do we have dependents? Are there mineral leases or royalties? Do we have exemptions? Did we win the lottery? Get your financial information in order. It is time to give back to Caesar what is Caesar’s.
Scammers are aware that tax season offers numerous opportunities to get our money and personal information. They use stolen names and stolen Social Security Numbers to file returns. An IRS report states that as of February, 2024, they (the IRS) confirmed more than 15,000 tax returns as fraudulent and prevented the issuance of $180.5 million in fraudulent refunds.
The Internal Revenue Service tells us that common tax schemes include charity tax scams, retirement tax scams, refund scams, and ‘dead person filing’ scams. There are more scams out there.
“Tips to Help Prevent Tax Identity Theft” offers some tips for consumers to add a layer of protection for consumers.
- File your tax return early. This gives scammers less time to get your information and use it fraudulently.
- If you file online, use a secure WiFi connection.
- If you file by mail, drop your return inside the post office. Scammers can use ‘tools’ to steal mail pieces from USPS mail boxes. There are also reports of stolen blue mail boxes and stolen cluster boxes from communities.
- Do not put your tax return in your rural mailbox for the postal carrier to pick up. Anyone can access your mail box.
- Know your tax preparer. You want to trust the person / firm that is receiving your sensitive information .
- Shred sensitive documents that you no longer need.
There are other tips.
- Beware of scammers who are trying to get your information by email, text, or phone. Is it really the IRS? The IRS will contact you by mail. If you think there are issues, call the IRS at 800 829-1040. Don’t use a number provided by a suspicious contact.
- Watch your mail. Does it appear to have been opened? Are there mail items missing? Contact the Internal Revenue Service immediately.
- Did you get a form for benefits you did not receive or for an employer you didn’t work for?
- Use caution with tax advice offered on social media
- See a reputable accountant or tax service
What if you’ve been compromised?
- Contact the Internal Revenue Service Identity Protection Specialized Unit at 800 908-4490
- Contact your financial institution regarding the situation and close compromised accounts
- Contact the three major credit agencies (Experian, TransUnion, & Equifax) to place a fraud alert on your accounts.
- Report identity theft to the Federal Trade Commission
Technology has made us more vulnerable. We can’t afford to be too trusting, unfortunately. We have to be our own best advocates on every front. Be cautious and be a smart consumer. Don’t become a scammee.
Stay safe.
