Identity Theft: The Biggest Tax Fraud Threat

Last updated on January 14, 2014

Identity theft remained at the top spot in the IRS’ Dirty Dozen Tax Scams list in 2013. This type of theft is the most widespread because of the ease and remoteness with which it can be conducted. Thousands of taxpayers fall victim to identity theft each year. Identity thieves either coax, threaten or dupe taxpayers into sharing their tax information with them. To keep yourself protected from identity theft, you must keep your financial and tax documents safe.

During the tax season, expect phone calls, emails and text messages from identity thieves. Apart from verified sources with which you had conducted correspondences before, avoid responding to any communication that requires you to share sensitive information immediately. Do not open email attachments or click on links in emails that are from unverified senders. Identity thieves almost always pose as a legitimate financial entity.

Protecting yourself from identity theft requires being careful. When faced with a situation that requires immediate action, take time to think it through. Identity thieves have been known to become aggressive and threatening if a taxpayer does not immediately share information. They use the mask of the IRS, a financial institution or even a law enforcement agency to intimidate taxpayers.

If you are careful and delay taking action, the tax thieves cannot harm you. Preparedness will help you to protect your personal, tax and financial information from tax scammers. Stay safe this tax season.