Tax Identity Theft: What to Know This Tax Season
As tax season gets underway, many people are gathering paperwork, checking last year’s return and planning how to file. It feels routine. But while you are getting organized, scammers are busy too. Tax season is a prime time for criminals to use stolen personal information to file fake tax returns and claim refunds.
Tax identity theft happens when someone uses your Social Security number or other personal details without your knowledge. Many people do not find out until their return is rejected or they receive a notice from the IRS. By then, the scammer may already have your refund.
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Common Ways Tax Scammers Try to Reach You
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Impersonating the IRS: Scammers may contact you claiming there is a problem with your taxes or that you owe money. These messages can come by phone, email, text, or even through social media or messaging apps like Instagram or WhatsApp. They often create urgency and pressure you to act quickly.
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Phishing Messages: Emails, texts, or direct messages may look official and ask you to click a link to verify information or access tax documents. These links can steal personal information or install harmful software.
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Fake Tax Preparers: Some scammers pose as legitimate tax professionals, promising bigger refunds or faster results. They may disappear after filing a false return using your information.
How to Protect Yourself
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File Early When Possible: Filing sooner can reduce the chance that a scammer files first using your information.
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Protect Personal Information: Store tax documents securely and be cautious about sharing your Social Security number or financial details.
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Be Careful With Messages and Links: Avoid clicking links or downloading attachments from unexpected emails, texts, or social media messages.
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Choose Trusted Tax Help: Work with a reputable tax professional who signs your return and includes their preparer ID. You can also use the Better Business Bureau’s website at BBB.org to help find reputable tax preparers.
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Pay Attention to IRS Mail: Open and read notices as soon as they arrive. A letter saying a tax return was already filed in your name can be an early sign of tax identity theft. Acting quickly can help limit the impact.
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Stay Informed About How the IRS Contacts You: With only a few exceptions, the IRS typically contacts taxpayers by mail through the U.S. Postal Service. If you receive a letter and are unsure whether it is legitimate, the IRS offers guidance on how to verify it at IRS.gov.
Tax season should be about checking something off your to do list, not dealing with unexpected stress. A little awareness now can help protect your identity, your refund, and your peace of mind.
If you think you may have inadvertently shared your personal information with a scammer, please reach out to us right away. You can call us at (805) 733-7600, visit your nearest branch, send a secure message through mobile or online banking, or use the phone number on the back of your debit or credit card.