Which is more prevalent: Identity theft that involves stolen credit cards or identity theft that involves a stolen Social Security numbers to file phony tax returns?
We may hear more about data breaches involving credit cards, but it’s tax identity theft that for the past five years has topped the charts, according to the Federal Trade Commission. How bad is it? In the first six months of 2013, 1.6 million taxpayers were affected by tax ID theft, compared with 271,000 for all of 2010, according to the U.S. Treasury Department’s inspector general. The result is billions of dollars in potentially fraudulent refunds.
Victims usually learn there’s a problem when they file their tax returns. Other times they find out when they’re told they owe additional taxes, have a refund offset, or have collection actions taken against them for a year they did not file tax returns. Still others find out about the ID theft when IRS records show wages from an employer unknown to them.
In the spirit of Tax Identity Theft Awareness Week Jan. 26-30, BBB offers these tips to help you keep your identity to yourself:
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File your tax return electronically or, if you choose to mail it, do so directly from the post office.
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Shred copies of your tax return, drafts or calculation sheets you no longer need.
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Respond to all mail from the IRS as soon as possible.
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Know the IRS won’t contact you by email, text or social media. If the IRS needs information, it will first contact you by mail.
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Get recommendations and check out BBB Business Reviews of tax preparers before you hand over personal information.
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If your SSN has been compromised, contact the IRS ID Theft Protection Specialized Unit at 800-908-4490
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Check your credit report at least once a year for free at annualcreditreport.com to make sure no other accounts have been opened in your name.
