Protecting Yourself Against Tax Scams and Identity Theft
Tax-related scams continue to rise, and criminals are finding new ways to target taxpayers during filing season. Fraudsters often use texts, emails, or phone calls that appear to come from the IRS or a state tax authority. These messages may promise a refund, threaten penalties, or request “urgent” verification of personal details. Some even mimic government websites and logos, making them look official.
The IRS has emphasized that it will never initiate contact through text, email, or social media to request sensitive information. Communications almost always arrive by mail. If you receive a message that feels suspicious, it is safest to assume it’s a scam.
How to Recognize a Scam
Scammers rely on urgency and fear. Common examples include:
- “Your tax refund request has been approved and is now pending release. Click here to confirm your account.”
- “Final notice: You must verify your information today or risk forfeiting your refund.”
- “Immediate action required. Failure to respond will result in penalties and interest.”
If you see messages like these, do not click links or reply.
How to Protect Yourself
Taking proactive steps can significantly lower your risk:
- Avoid clicking links in unsolicited messages. Instead, type official website addresses directly into your browser.
- Enable multi-factor authentication for tax, banking, and financial accounts.
- Monitor your credit regularly using annual credit reports or monitoring services.
- Safeguard documents by shredding paperwork that contains personal details.
Warning Signs of Tax-Related Identity Theft
Identity theft often reveals itself in subtle ways. Be alert if you:
- Cannot e-file because your Social Security number has already been used.
- Receive IRS notices about returns you did not file.
- Get wage or income statements from employers you don’t recognize.
Any of these are strong indicators that your identity may have been compromised.
What to Do if You’re a Victim
If you suspect tax-related identity theft, quick action is essential. Steps include:
- Contact the IRS immediately if you receive a notice that doesn’t match your tax activity.
- Submit Form 14039, Identity Theft Affidavit, if instructed or if your e-file is rejected.
- File your return on paper if electronic filing is blocked.
- Place a fraud alert with one of the three major credit bureaus (Equifax, Experian, or TransUnion).
- Report the incident through identitytheft.gov to create an official record.
- Watch accounts closely for unauthorized activity.
The IRS also offers the Identity Protection PIN (IP PIN) program. This six-digit code is renewed each year and must be used when filing your return, providing an extra layer of protection against fraudulent filings.
Stay Vigilant
Scammers are refining their tactics, but awareness remains the best defense. By recognizing suspicious communications, practicing good digital security, and acting swiftly if identity theft occurs, taxpayers can minimize risk and protect their financial well-being. Your trusted ShindelRock team tax advisor can also help verify questionable messages and guide you through the IRS’s protocols if your identity is compromised.