"Protect Yourself from Tax Return Identity Theft."

Some forms of identity theft are relatively easy to deal with, such as stolen credit card numbers. But it’s a nightmare to unravel tax refund theft if an imposter grabs your Social Security number and files a return in your name.

Hundreds of thousands of Americans become victims of tax-related identity theft each year, “typically through no fault of their own,” according to the Taxpayer Advocate Service (TAS) at the IRS. TAS called it one of the “most serious problems” faced by taxpayers in 2023 and 2024. In fact, the IRS saw more than a three-fold increase in tax identity theft following the pandemic, as fraudsters targeted pandemic-related benefits.

“Identity theft, in general, is very lucrative, and tax identity theft can be extremely lucrative,” said Eva Velasquez CEO of the nonprofit Identity Theft Resource Center (ITRC).

Committing the crime has become easier in recent years because so much personal information has been exposed through massive data breaches.

“All of your credentials are already out there; your data has been breached,” Velasquez told Checkbook. “Everything that’s needed to file a fraudulent tax return in your name is available for purchase. So, we have to employ additional protections.”

Here’s how to fight back.
Combating Tax Refund Fraud

A simple, but effective way to prevent tax identity theft is to request an identity protection PIN (IP PIN) from the IRS. This unique six-digit number prevents anyone else from using your Social Security Number (SNN) or individual taxpayer identification number (ITIN) to file a return in your name. It’s like freezing your credit files to lock out the bad guys.

“Even if a thief has all the information about you, anything that would be necessary to file those taxes in your name, without that PIN, they cannot succeed,” Velazquez explained. “We encourage everyone to use an IP PIN.”

READ more Information online at:
https://www.checkbook.org/delaware-valley-area/consumers-notebook/articles/Protect-Yourself-from-Tax-Return-Identity-Theft-7898

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