You might not be ready for tax season, but identity thieves and Internal Revenue Service imposters are. With this week being Tax Identity Theft Awareness Week we’d like to encourage you to be aware of ways to protect yourself from falling victim to these scammers.
What is tax identity theft? It happens when someone uses your Social Security number to file a phony tax return and claim your refund. Employment-related tax identity theft occurs when someone uses your Social Security number to earn wages, which are then reported as your income.
IRS imposters are the scammers who pretend they’re calling from the IRS. They claim you owe taxes and demand that you pay right now, usually with a gift card or prepaid debit card. They threaten you’ll be arrested or face other bad consequences if you don’t pay. But it’s all a lie. If you send the money, it’s gone.
To protect yourself from falling victim to tax identity theft, the Federal Trade Commission recommends that you keep your tax records and Social Security card in a safe place. When you decide to get rid of your tax records, shred them. If you don’t have a shredder, look for a local shred day.
If you use tax preparation software like TurboTax, TaxAct, or TaxSlayer, use multi-factor authentication. It requires two or more credentials to log in to your account. Multi-factor authentication makes it harder for scammers to log in to your accounts if they do get your username and password.
Also, don’t give your…
