Tips to Prevent Tax Identity Fraud

As Americans go through the process of filing tax returns, identity thieves are scheming to get their hands on that money. Tax identity fraud takes place when a criminal files a false tax return using your personal information to fraudulently claim the refund.

Identity thieves generally file false claims early in the year. Victims learn of the deception when they file their return and are notified that a return was already filed using their identity.

Follow these tips to help prevent tax ID fraud:

• Don’t wait to file. File your tax return as soon as you are able. This allows less time for criminals to use your information to file a false return.
• File on a protected wi-fi network. For electronic filing, be sure you connect through a password-protected personal network and use a reputable online service. Avoid using public networks such as a wi-fi hotspot at a coffee shop.
• Use a secure mailbox. When filing by mail, drop your tax return off at a United States Post Office or place it in an official USPS postal box. Criminals are known to pull completed tax return forms from home mailboxes during tax season.
• Find a tax preparer you trust. Get recommendations and select a reliable professional if you plan to hire someone to do your taxes. Some thorough research before handing your financial information over to a tax preparer is time well spent.
• Shred what you don’t need. Once you’ve completed your tax return, shred sensitive documents no longer needed and safely file the ones you do.
• Beware of phishing scams by email, text or phone. Scammers may try to solicit sensitive information by impersonating the Internal Revenue Service (IRS). The IRS will not contact you by email, text, or social media. They will contact you by mail first.
• Watch your mail closely. Fraudsters look for W-2s, tax refunds or other mail containing your financial information. If you expect your W-2s by mail and haven’t received them and your employer indicates they’ve been mailed, or the envelope appears to have been previously opened upon delivery, contact the IRS immediately.

If you believe you’re a victim of tax identity theft or if the IRS denies your tax return because one has previously been filed under your name, alert the IRS Identity Protection Specialized Unit at 1-800-908-4490. In addition, you should:

• Respond immediately to any IRS notice and complete IRS Form 14039, Identity Theft Affidavit.
• Contact First State Bank immediately, and close any accounts opened without your permission or tampered with.
• Contact the three major credit bureaus to place a ‘fraud alert’ on your credit records:
  Equifax Equifax.com , 1-800-525-6285
  Experian Experian.com , 1-888-397-3742
  TransUnion TransUnion.com , 1-800-680-7289
• Continue to pay your taxes and file your tax return, even if you must do so by paper.

More information about tax identity theft is available from the IRS and the Federal Trade Commission .