Steps to Protect Your Identity During Tax Season

• admin
• January 23, 2025
• 6 min read

Steps to Protect Your Identity During Tax Season

Tax season brings its own set of challenges, from deciphering forms to meeting deadlines. But amid the rush to file, one critical concern often takes a backseat: protecting your identity. Cybercriminals and identity thieves are particularly active during tax season, looking to exploit unsuspecting taxpayers. Fortunately, there are practical steps you can take to safeguard your personal information and ensure that your tax filing experience is secure.

This guide walks you through actionable steps to protect your identity, explains how identity theft impacts taxes, and offers tips for maintaining a secure tax filing process.

Why Protecting Your Identity During Tax Season Matters

Identity theft isn’t just an inconvenience—it can wreak havoc on your finances, credit, and ability to file taxes. When a thief uses your Social Security number (SSN) to file a fraudulent tax return, it can result in delayed refunds, IRS audits, and long-term financial headaches. Protecting your identity during tax season is vital to avoiding these complications and ensuring your peace of mind.

How Identity Theft Impacts Taxes

Tax-related identity theft occurs when someone uses your personal information—most commonly your SSN—to file a tax return and claim a fraudulent refund. Often, taxpayers discover the fraud when the IRS rejects their legitimate return, stating that one has already been filed under their SSN.

Key red flags include:

• Receiving an IRS notice about a suspicious tax return.
• Finding out someone used your SSN for employment purposes.
• Experiencing a delay in receiving your refund.

Understanding these risks is the first step toward protecting yourself.

Steps to Protect Your Identity During Tax Season

1. Safeguard Your Social Security Number (SSN)

Your SSN is the cornerstone of your tax identity, making it a prime target for thieves. Protect it by:

• Storing your Social Security card in a safe place, not in your wallet or purse.
• Only providing your SSN when absolutely necessary.
• Avoiding sharing your SSN over unsecured phone lines or online forms.

2. Use Secure Online Platforms for Filing

If you file your taxes online, choose a secure and reputable platform that encrypts your data. Look for:

• HTTPS in the website URL.
• Multi-factor authentication (MFA) options.
• User reviews and strong security protocols.

Secure tax filing platforms help ensure that your sensitive information isn’t intercepted during the process.

3. Be Cautious of Phishing Scams

Phishing scams are rampant during tax season. Fraudsters may pose as the IRS or a tax professional to trick you into revealing sensitive information. To stay safe:

• Avoid clicking on links in unsolicited emails claiming to be from the IRS.
• Remember that the IRS will never initiate contact via email or text.
• Verify any communication by contacting the IRS directly through their official channels.

4. Use a Strong, Unique Password for Tax Accounts

If you file online or access your tax records through an online account, use a strong, unique password. Best practices include:

• Using at least 12 characters, including a mix of letters, numbers, and symbols.
• Avoiding common words, phrases, or patterns like “12345” or “password.”
• Changing passwords regularly, especially if you suspect an account breach.

5. Shred Sensitive Documents

Old tax returns, pay stubs, or any document containing personal information should never go into the trash unshredded. Use a cross-cut shredder to destroy documents and prevent dumpster divers from accessing your data.

6. Monitor Your Credit and Tax Records

Keeping an eye on your credit and tax accounts can help you detect suspicious activity early. Steps include:

• Requesting a free annual credit report from each of the three major credit bureaus at AnnualCreditReport.com.
• Checking your IRS account for unauthorized activity at IRS.gov.
• Signing up for credit monitoring services for added protection.

7. File Your Tax Return Early

One of the simplest ways to reduce the risk of tax-related identity theft is to file your return as early as possible. Thieves can’t file a fraudulent return using your information if you’ve already submitted your legitimate return.

8. Avoid Public Wi-Fi When Accessing Tax Information

Public Wi-Fi networks are notoriously insecure, making it easy for hackers to intercept your data. When working on your taxes, always:

• Use a secure, private Wi-Fi connection.
• Enable a virtual private network (VPN) for added security.

9. Secure Your Devices

The devices you use to file your taxes—whether a computer, tablet, or smartphone—should have up-to-date security software. Steps to secure your devices include:

• Installing antivirus and anti-malware programs.
• Regularly updating operating systems and apps.
• Using device encryption to protect stored data.

10. Request an IRS Identity Protection PIN (IP PIN)

The IRS offers an Identity Protection PIN (IP PIN) to eligible taxpayers as an additional layer of security. This unique six-digit number ensures that only you can file a tax return using your SSN. You can request an IP PIN at IRS.gov.

Tips for Maintaining Long-Term Taxes and Identity Protection

Stay Informed About Identity Theft and Taxes

Awareness is key to staying ahead of identity thieves. Regularly review IRS updates on identity protection and watch out for new scams targeting taxpayers.

Use Professional Tax Services Wisely

If you hire a tax preparer, ensure they are trustworthy and reputable. Check their credentials, read reviews, and verify their IRS Preparer Tax Identification Number (PTIN).

Secure Physical Copies of Tax Documents

Keep paper copies of tax returns and other sensitive documents in a locked, fireproof safe. This prevents unauthorized access and protects them from disasters.

What to Do if You Suspect Identity Theft

If you suspect you’re a victim of tax-related identity theft:

1. Contact the IRS immediately: Call the Identity Theft Protection Specialized Unit at 800-908-4490.
2. Complete Form 14039 (Identity Theft Affidavit): Submit this form to the IRS to report suspected fraud.
3. Monitor Your Accounts: Check your credit and tax accounts for further unauthorized activity.
4. File a Police Report: Notify your local authorities if identity theft is confirmed.

Empower Yourself with Identity Protection

Tax season doesn’t have to be stressful or risky. By taking proactive steps to protect your identity, you can reduce your vulnerability to identity theft and file with confidence. Remember, a secure tax season starts with awareness, diligence, and the right precautions. Keep your personal information safe, and don’t let identity thieves hijack your financial future.