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Accountants who prepare tax returns for individuals can attest that tax-related identity theft is relatively common. Every year, hundreds of thousands of people report having fraudulent returns filed in their names. Thankfully, there are steps you can take to reduce the risk of it happening to you.

What Is Tax-Related Identity Theft?

Tax-related identity theft is when someone uses another party’s Social Security number to file a return that yields a fraudulent refund. You may have been a victim of this form of identity theft if you receive a letter from the IRS stating that a suspicious return has been filed in your name. Other signs of trouble include a duplication error that prohibits you from e-filing and a tax transcript that you never requested.

How Do Scammers Steal Social Security Numbers?

accountantScammers have several strategies for securing the information they need to file fake tax returns. Considering some people keep their Social Security cards on them at all times, it may be as easy as swiping wallets. Hacking into online banking accounts can also yield the data they need, as can phishing. This is when someone sends an email that looks like it’s from the IRS to request personal information.

How Can You Protect Yourself?

Working with an accountant to file your return as early as possible each year is the easiest way to prevent tax-related identity theft. Once your return has been submitted for a particular tax year, the IRS won't accept any other returns using the same Social Security number.

You can also protect yourself by keeping your Social Security card in a safe place at home, and by ignoring emails from the IRS, which will only ever contact you via snail mail. Using strong passwords for all your online accounts and shredding paper documents that contain personal information will also reduce the risk of having your identity stolen.

 

When tax season rolls around, count on the accountants at Tostrud & Temp, S.C. for help preparing your return. Located in La Crosse, WI, this firm is backed by more than 120 years of combined experience in the financial field. Their seasoned accountants can assist with tax planning, income return preparation, IRS representation, and retirement planning. To learn more about their services, visit their website. To make an appointment today, call (608) 784-8060.

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