Tax Season Safety: How to Keep Your Personal Information Secure

Tax season is a prime opportunity for cybercriminals to steal your information and money. From phishing emails to fraudulent tax preparers, the threats are numerous.

Here are seven proactive steps to help you protect your finances:

1. Verify Communications

The IRS never initiates contact via email, text, or social media. Contact is only made via mail or in-person visits after prior correspondence. If you receive an unsolicited message or call claiming it’s from the IRS, it’s likely a scam.

Look up and use official channels to confirm any suspicious communication. For IRS-related concerns, go to IRS.gov directly or call the official IRS hotline.

2. Monitor Personal Information Closely

Shred sensitive documents, including tax forms, and avoid sharing personal information over unsecured channels.

Use strong passwords and enable two-factor authentication for any online accounts, especially those containing financial or tax-related data.

3. File Early

Filing your tax return early significantly reduces the risk of refund theft. Scammers can’t use your Social Security number for fraudulent claims if you’ve already submitted your return.

4. Use Trusted Tax Professionals

If you’re hiring a tax preparer, ensure they are credentialed, experienced, and have positive reviews. Check their preparer tax identification number (PTIN), which is required by the IRS for professionals preparing returns for compensation.

5. Beware of Unconventional Payment Requests

The IRS will never ask for payment via gift cards, prepaid debit cards, or cryptocurrency. If someone demands payment through these channels, it’s a red flag.

6. Educate Yourself on IRS Procedures

Familiarize yourself with legitimate IRS practices to identify fraud more easily. For instance, the IRS rarely demands immediate payment and won’t threaten law enforcement action over unpaid taxes.

7. Check Your Credit Reports

Regularly monitor your credit score and activity for unusual transactions or new accounts that may indicate identity theft.

For additional information on common tax scams, you can visit the IRS website.