Tax Season and Identity Theft

Last updated on January 13, 2014

It is during tax season that identity thieves are the most active. Identity thieves use various means to obtain your tax information such as Social Security Number, name, date of birth, and filing status. Using this information, they file fraudulent tax returns on your behalf to claim huge refunds. The IRS may not always discover the fraud in time. Many times, a fraud is only discovered after the law enforcement agencies catch the thieves. Therefore, it is important to be careful while sharing any financial, personal and tax information, especially during the tax season.

There are various ways identity thieves dupe taxpayers into sharing sensitive information. Fake emails, fake web pages, and false phone calls are common methods they use to reach taxpayers.

Identity thieves pretend to be a legitimate agency such as the IRS or a financial institution, and ask a taxpayer to share tax, financial, and/or personal information. The taxpayer never knows that they are sharing information with scammers. It is only after the taxpayer is made aware that two tax returns were filled with their Sociel Security number that the tax fraud is discovered. The best method to stay protected from tax fraud is to file taxes early. After your tax return has reached the IRS, if tax thieves file another tax return, it will automatically be rejected by the IRS.

In 2014, the tax season will begin on January 31^st. The IRS delayed the start of the season due to the federal shutdown. Taxpayers are encouraged to file early and be careful while sharing sensitive information.