Everyone’s favorite season is almost upon us… tax season! It’s a time to round up your W-2’s, note life changes, and submit important and confidential information for your tax return. And for some upon filing their taxes, they unfortunately discover they are a victim of tax identity theft.
What is tax identity theft?
Tax identity theft occurs when someone uses your social security number and personal information to either gain employment or steal your tax refund. Often times, tax identity theft is discovered when the victim is filing taxes. The concept of tax identity theft is the same as identity theft, however the intention and purpose behind it is what differentiates the two.
How to protect your information?
Keep your confidential and personal information in a secure and safe place. If using platforms like TurboTax, TaxAct, or TaxSlayer, turn on two-factor authentication, an extra security layer that makes it harder for scammers to log into your accounts. If you plan to dispose of your tax records, be sure to shred all paper. No shredder? No worries! Chelsea Groton Bank offers six free shred days a year, with three in the Spring and three in the Fall. Visit Chelsea Groton’s upcoming events page to see when the next shred day is!
Lastly, impersonator scams are continuously on the rise. If someone calls, emails, or texts saying they are the IRS, do not give them your confidential information. The IRS will never call you asking for your information. Best practice is to contact the IRS directly with a known and verified number.
What to do if stolen?
If your information has been compromised, submit a report immediately to IdentityTheft.gov. In doing so, an FTC Identity Theft Report, IRS Identity Theft Affidavit, and Personal Recovery Plan are created. To report in Spanish, click here.
