As taxpayers begin to organize their financial documents, prepare tax returns and apply for refunds, Thomas Oscherwitz, chief privacy officer for ID Analytics, Inc. and former U.S. Senate Legislative expert on identity fraud, offers the following 7 tips to safeguard your identity and assets this tax season.
1. Monitor your mailbox. Keep a lookout for official tax forms, like 1099s and W-2s. Missing or lost documents could be a sign of identity theft and should be investigated immediately. Companies must mail your W-2s and 1099s by January 31st, meaning if there were any coming your way, they should have arrived by now. Call your employer or any of your clients if you haven’t received those forms yet.
2. Protect your sensitive tax documents. During tax time, many of the forms consumers handle have sensitive information of immense value to identity thieves, such as your Social Security number on them. Keep your tax documents in a safe, secure place that is out of public view.
3. Beware of scams. Tax time is a prime time for fraudsters to target consumers with phony emails asking for their personal information. Remember that the Internal Revenue Service (IRS) does not initiate communication with taxpayers through email.
4. Track IRS communications carefully. If you receive an unusual notification from the IRS, such as a report of wages from an employer you do not know, be alert to possible identity theft. Call the IRS Identity Protection Specialized Unit at (800) 908-4490 just to be sure.
5. Keep tabs on your annual income statement from the Social Security Administration. A fraudster can steal your SSN and use it to get a job. The fraudster’s employer would then report the fraudster’s wages under your SSN to the IRS. Check for any discrepancies between the income reported and the wages you received. In addition, be aware that the IRS may then think you have not reported all of your income on your tax return.
6. Pay attention to duplicate returns. If someone steals your identity, they could file a tax return first using your SSN. Then when you file your return, the IRS will think you have already received a refund or that you have filed a second copy or duplicate return. This confusion will cause delays in receiving your refund.
7. Contact the IRS if you are victim. The IRS now has a toll-free number (800-908-4490) to assist identity theft victims. They will mark affected accounts to resolve identity theft issues more quickly.
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