Protecting Yourself from Tax Identity Theft Scams

What is Tax Identity Theft?

Tax identity theft occurs when someone uses your Social Security number (SSN) to file a fraudulent tax return and collect your refund. Unfortunately, you may not discover this until F+H tries to file your legitimate tax return, only to find that the IRS rejects it as a duplicate filing.

Signs of Tax Identity Theft

1. IRS Imposters: Scammers pretend to call from the IRS, demanding personal information. Remember that the IRS never initiates contact via email, text, or social media to request sensitive data.
2. Suspicious Letters: If you receive an IRS letter inquiring about a tax return you didn’t file, investigate promptly.
3. Duplicate Social Security Number: If you can’t e-file your return due to a duplicate SSN, it’s a red flag.
4. Unrequested Tax Transcripts: Be cautious if you receive an unsolicited tax transcript in the mail.
5. Unauthorized Online Account Activity: If the IRS notifies you of an online account created in your name without your action, take it seriously.
6. Unexpected Tax Notices: If you owe additional tax or face collection actions for a year you didn’t file a return, investigate promptly.
7. Mysterious Income: IRS records showing wages from an employer you didn’t work for should raise concerns.
8. Unsolicited Employer Identification Number (EIN): If you’re assigned an EIN you didn’t request, investigate further.

Reach out to us immediately if any of these occur, be vigilant and watch out for these warning signs.

Protecting Your Data and Identity

1. Computer and Mobile Phone Security: Keep your devices updated, avoid phishing emails and use strong passwords.
2. Multi-Factor Authentication: Enable multi-factor authentication wherever possible.
3. IRS Identity Protection PINs: Consider obtaining an Identity Protection PIN from the IRS.

How Do Identity Protection PINs Work?

1. They are six-digit number assigned every year to eligible taxpayers by the IRS.
2. Helps prevent identity thieves from filing fraudulent tax returns using stolen Social Security numbers.
3. When we file your tax return, we’ll need to enter your IP PIN.
4. You can apply at the IRS website.

How We Help

The IRS, state tax agencies and the tax industry collaborate to protect taxpayer data. They never initiate contact via email, text, or social media to request personal or financial information. Stay informed and safeguard your financial well-being against tax identity theft.

Remember, vigilance is your best defense. If you suspect tax identity theft, take immediate action to protect yourself, let us know and report it to the appropriate authorities. We will be able to direct you on how to move forward.