Protecting Yourself this Tax Season

Every tax season brings a new post on how to avoid scams.  Redundant but relevant, as this is the time when scammers prey on taxpayers.  We provided some basics last year in Tax Scams.  If you don’t have time to read much further, know these basic tips:

  1. Never give out your Social Security Number to someone who calls you.  Ever.
  2. The IRS will never contact you by phone to demand money.  Ever.
  3. The IRS will not threaten  police action or ask for credit/debit card numbers over the phone
  4. The IRS will not call about an unexpected refund.  You are being scammed.

The IRS will communicate by letter through the mail.  If you need to contact them, they can be reached at 800-829-1040.  The IRS Is protecting consumers in several ways, so when you place that call be prepared to supply:

  • Social Security numbers or ITIN and birth dates for anyone on the tax return
  • Filing status
  • A copy of the tax return in question
  • Any IRS letters or notices received by the taxpayer

If you are contacting the IRS on behalf of another person you will need to complete Form 8821 and Form 288.  These will give Power of Attorney and Tax Information Authorization. If the other party is deceased then a copy of the death certificate and Form 56 are required.

What do criminals do with the information they steal?  Withdrawing money from bank accounts and using credit or debit cards for purchases are among the typical crimes.  Also common are selling the stolen information or filing a fake return io claim the money. Knowing how the stolen information is used, there are several important steps to take immediately after you suspect you’ve been victimized to minimize damages

  1. Figure out what information was breached.
  2. Utilize credit bureaus to determine the extent of the damage.
  3. Contact credit card companies and your bank to re-establish new accounts and freeze old ones.
  4. Reset all passwords.

For more information about protecting yourself and your investments, visit Tax Scams and Consumer Alerts.