Identity theft doesn’t only affect your credit history and ability to apply for new credit. When someone steals your Social Security number and personal information, they may also file a fraudulent income tax return to claim a refund in your name. Thousands of people are affected by tax identity theft every year, but you can protect yourself by keeping your personal information secure and staying alert to the signs of trouble. 

How to Avoid Tax Identity Theft

1. Secure Your Social Security Number

A valid Social Security number is required to file an income tax return, so keep yours safe from prying eyes. Never carry your Social Security card with you to ensure it’s not lost or stolen, and secure or shred any documents that contain the number and other personally-identifying information. Don’t share this number unless absolutely necessary. 

2. Learn the Signs of Scams

Identity theft often begins with information stolen via phishing. Thieves posing as banks, retailers, or even the IRS may send an email, text message, or call you in an attempt to get you to hand over your details. However, the IRS will never contact you by phone, email, or text; they will always send a letter if they need to communicate with you.

Using antivirus software with a phishing filter can keep many fraudulent messages out of your inbox, but if one sneaks through, keep in mind that legitimate businesses will never ask you to share personal information or passwords by email. 

3. File Taxes Early

Tax identity theft usually involves the thief filing an income tax return in your name early on, in the hopes of getting a refund before you do. The sooner you file your taxes, the better your chances of thwarting any attempts at a fraudulent filing.

Keep meticulous records about your filing, and actively monitor your IRS account for illegal activity. The IRS will send written confirmation of activity on your account, including every time you access the account or make a change, so open your mail and stay on top of what’s happening with your account. 

Working with a qualified, reputable CPA can ensure that your income tax return is filed correctly and help prevent tax identity theft. If you’re located near Waynesboro, VA, turn to Arehart Associates, Ltd. for all of your tax preparation needs. These experienced professionals have provided the expertise and knowledge taxpayers need to avoid mistakes and maximize savings for more than 40 years. To learn more about their financial services, visit them online or call (540) 949-0124 to schedule an appointment.