Tax season can be a stressful time, but it’s also an opportunity to maximize your financial security in order to protect your taxes from identity theft. Tax identity theft is a growing concern in the United States, and as technology advances so do the potential for criminals to access your personal information. Fortunately, there are ways to safeguard your taxes from identity theft and secure peace of mind throughout tax season. Understanding the risks and taking proactive steps to protect yourself is key in preventing any potential data breaches.
True IRS Communication about Tax Information is Always Via USPS
The first tip to protect your taxes from identity theft is to remember that any true IRS communication is going to come through the United States Postal Service. You will never get texts, emails, social media communication, or automated or representative calls.
Watch Your Credit
Get a credit monitoring service and check it faithfully. Often, the first signs of identity theft, tax-based or otherwise, will pop up on those frequent credit reports. When you see those changes, you can then take immediate action to lock down your accounts and safeguard other sensitive information that may not have been stolen yet.
Keep Personal Information Private
Numbers and account information for key business, personal, and financial information should always be kept private whenever possible. Your Social Security number (SSN), Tax Identification Number (TIN), and other sensitive information can easily be stolen if you are carrying it around with you, either in a physical card or as a digital copy on your smartphone, tablet, or another electronic device.
Most often, this type of information is stolen when you choose to share it with someone you trust. Your spouse should not be keeping a digital record of your SSN, for example, without having that information password protected. Even writing the information down for a friend (in an emergency or some unexpected situation) can be found by someone who is not an intended recipient of it.
Brush Up Your Cybersecurity Protocols
Even if you don’t send tax documentation via digital delivery methods, your identity and tax information can be easily obtained if you are not safeguarding it appropriately.
We’ve all, at one time or another, given in to the urge to write down our important or most-used passwords in a notebook that we keep in our office, car, or at home. And though it seems impossible that someone would notice or swipe it from those places, it has happened more times than you can imagine.
Cybersecurity is something that takes constant vigilance. It means creating strong, unique passwords for all your accounts, both personal and professional, that could allow access to sensitive information.
It’s also important to install and maintain software that has anti-virus and anti-malware capabilities. And if you are notified of a breach, even one that was reported as “attempted but prevented,” you should follow up with your security provider or check the anti-virus apps, messages, and other notifications you may have received.
If you are unsure whether your current devices and systems (which should most definitely include your smartphone and any other mobile or handheld devices) are protected, reach out to a cybersecurity expert or call your favorite electronics providers and have them do a systems check for you.
Get a Locking Mailbox
This one may seem silly, but a locked mailbox – especially if you are the owner or leader of a business – is another great way to ensure you don’t become a victim of tax return identity theft.
Credit card solicitation mail, even if it goes unanswered, can be stolen and used to acquire a new card under your name that you never applied for or authorized. You should treat credit card solicitation mail just like other sensitive documents – they should be shredded and/or destroyed in a way that someone cannot piece back together or read your information.
File Early to Protect Your Taxes from Identity Theft
Filing your taxes early may seem like a strange way to protect your taxes from identity theft, but here’s the trick: thieves can’t steal your tax info for the tax year 2022 if you’ve already filed your taxes.
There are lots of reasons to get your tax filing done early, not the least of which would be to get your tax return out of the hands of would-be scammers and those who wish to use your personal or business tax files to cash in for themselves.
Here are some things to look for regarding potential tax-related identity theft, according to Investopedia. Double check with the IRS or your tax preparer if:
- You get a letter from the IRS that mentions a fraudulent tax return that you (or your tax preparer) didn’t file.
- You are unable to e-file your return due to a duplicate SSN.
- You receive tax transcripts in the mail, but you never requested them.
- You get an IRS notice that an online account was created without you having created it.
- You fear your SSN has been compromised in any way (it was stolen, other accounts are being created under your name or Social Security number, etc.)
- Your IRS account is accessed or disabled without you having taken any action.
- You receive IRS records for an employer you never worked for.
Filing early can offer you the security of never giving a would-be thief the time to collect your information and file an erroneous return under your name or business.
Safeguard Your Financial & Tax Documentation
Just as you want to keep your financial, business, and personal information under physical and digital lock and key, you need to do the same with any documentation you receive about your finances, accounts, and taxes, both personal and business.
eFile360 is a safe option for filing and storing your 1099, 1098, ACA, and W-2 forms information. We offer password-protected accounts, from which you can access all your forms (even from previous years). As an added security measure, we don’t store credit card information, and we offer real-time payment processing.
Our services are a great way to help protect your taxes from identity theft. Sign up for a free eFile360 account today to start the filing process with a partner that is committed to protecting your information and is an IRS-authorized e-file provider.