Gathering documents to file taxes can leave important personally identifying information (PII) at risk for exposure. Your W-2s and other IRS reporting forms include your Social Security number (SSN) and can consist of financial account information. These numbers are a gold mine for identity thieves. Your sensitive PII can enable a thief to obtain a job, open new lines of credit, access existing financial accounts, obtain government benefits and generally create havoc in your life. Here are some identity theft tax tips to reduce your risk.
Paper Security
All tax documents and paperwork should be secured in a private location at all times. When storing your tax returns and other sensitive financial documents, use a locking file cabinet or a fireproof safe. Make sure you control who has access to this storage.
Data on the Move
Do not leave tax documents in your vehicle; thieves will break into your car to steal documents that can be used to commit identity theft. If you do not need documents with PII, do not carry them.
Computer Security
Since many taxpayers file taxes online or store financial information on their computers and other mobile devices, make sure your computer or mobile device is password protected. Install and update your virus and security programs.
Securing Online Accounts
If you e-file directly with the IRS or with a service like TurboTax, ensure your online accounts are protected with a strong, unique passphrase. Once you have e-filed, print and save the return, or save the return to an external storage device and store it in a safe location. You may want to consider a secure cloud-based platform to store your sensitive documents and information. Do not keep unnecessary tax-related items on your computer.
Mail Theft Awareness
When mailing your tax documents, take them directly to the Post Office. If you have to use an outside pickup box, drop your mail off right before the last pick-up of the day. Do not leave tax documents in an unsecured mailbox. Regularly check your mail during tax time for correspondence from the IRS, particularly if you expect a tax refund.
Tax Preparers and Personal Privacy
Be selective about who works on your taxes. The IRS provides a directory of tax preparers and their credentials. Research tax preparation companies with the Better Business Bureau, especially new or seasonal offices. Ask the preparer how your information will be stored and security measures in place to protect your PII. Trust your impressions. If you feel uncomfortable or doubt the firm’s commitment to protecting your privacy, take your business elsewhere. The same applies to online companies; read their privacy policy and chat with a customer service representative if you have questions.
Tax Time Scams
The IRS does not send emails or make phone calls to obtain information from you or to provide a refund. Do not provide sensitive information such as your Social Security number or bank account information over the phone, via text, social media or email.
Document Disposal
If you plan on disposing of any tax-related documents or old returns, use a cross-cut shredder. These include credit card receipts, papers with Social Security numbers, financial statements, health benefit statements and other financial documents.
If you have additional questions about identity theft tax tips or think you might be a victim of tax identity theft, you can contact the ITRC for no-cost assistance. Call us toll-free at 888.400.5530 or live-chat with us.
