Millions of Americans will be affected by online income tax scams this year, according to reports from experts with the IRS and several tax preparation companies. Many people only discover that they have been the victim of an online income tax scam when they go to file their income tax return and find that a return has already been made using their name and Social Security number. Once scammers have obtained your personal information, they can use that information to file an income tax return and can have any refund sent to a prepaid debit card that they can use to access the funds. Protecting yourself from becoming a victim of online income tax scams can be complicated, but the effort is worth avoiding the headaches that come with having your personal information stolen and used without your consent.
Protect Your Personal Information
The logical first step in protecting yourself from becoming a victim of an online income tax scam is to protect your personal information from criminals. The best way to prevent your personal information from being stolen is to limit who has access to the information, shred any documents that contain the information, and to never give the information out over the phone. Unfortunately, this step has been made considerably harder with all of the data breaches that have occurred with large businesses in recent months. A recent data breach at Anthem reportedly revealed the personal data of nearly 80 million people, including their name, address, and social security number. If you suspect that you have been a victim of one of these data breaches, monitor your credit report and accounts carefully to see if a criminal is making use of your data.
Obtain A Personal Identification Number From The IRS
People that believe there is a reasonable suspicion that their compromised personal information may be used for an online income tax scam can request a personal identification number from the IRS to indicate that the tax return being filed is actually coming from you. These personal identification numbers are issued to people who have previously been a victim of identity theft or have experienced an incident that could potentially expose them to identity theft. When you file your federal tax return, the personal identification number assigned to you must be included on the tax forms or your tax return may be rejected.