Categories

Need help selecting a firm?

Tell us about your project and get introduced to the best accounting and tax firm for your needs.

Get Started

Protect Yourself From Identity Theft

The IRS urges American taxpayers to avoid potential tax problems by taking steps to protect themselves from all forms of identity theft and identity fraud.

To understand just how big a problem identity theft has become for the IRS, they’ve had more than 3,000 employees working on identity theft cases and have trained more than 35,000 employees who work with taxpayers to recognize and provide assistance when identity theft occurs.

When ID theft happens, it becomes a huge problem for the taxpayer and the taxpayer’s tax preparer. So, the best way to combat ID theft is to protect against it in the first place and avoid becoming one of those unfortunate individuals that has to deal with it. Here are some tips to protect from becoming a victim:

  • Never carry a Social Security card or any documents that include your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN).
  • Don’t give anyone your or a family member’s SSN or ITIN just because they ask. Give it only when required.
  • Protect financial information.
  • Check credit report every 12 months.
  • Secure personal information at home.
  • Protect personal computers by using firewalls and anti-spam/virus software, updating security patches and changing passwords for Internet accounts. Don’t use the same password for all accounts.
  • Portable computers, tablets and smartphones can be stolen or lost., Limit the amount of personal information they contain that can be used for ID theft., Be extra vigilant against theft.
  • Don’t give personal information over the phone, through the mail or on the Internet without validating the source.

Indicators of ID Theft

  • More than one tax return for the taxpayer was filed;
  • There is a balance due, refund offset or collection actions have been taken for a year the taxpayer did not file a tax return;
  • IRS records indicate the taxpayer received more wages than actually earned; or
  • State or federal benefits were reduced or cancelled because the agency received information reporting an income change.

TaxBuzz Guides