Although federal and state governments have taken actions in recent years to combat tax return theft, it is still a real concern for many Americans. Tax identity theft occurs when criminals use fake identities to file fraudulent tax returns. If this happens to you, it will be difficult to get the refund you are owed, and you might have to pay taxes that you don’t actually owe. Use this guide to protect your information and make the tax return preparation process a lot easier.

What Are Some Popular Scams Used to Steal Identities?

It’s very common for fraudsters to call or email individuals and pretend to be an authority figure from a government agency or company official with whom you do business. They will ask for personal information, such as your Social Security number and birthdate, that can be used to claim your refund before you start the tax return preparation for the past year.

How to Protect Yourself From Identity Theft

Never give out your personal information over a phone call or email unless you initiated the contact. If you get a call from someone claiming to be a representative from a business or government agency, hang up and call them back using an officially listed number. The IRS will almost always make initial contact with a letter, and they will never demand immediate payment.

Store your Social Security card, bank information, tax documents, and other documents containing personal information in a secure location. Leave this paperwork at home, and when it’s no longer needed, shred it. Also, use email accounts with firewalls that protect against phishing attempts, don’t click on attachments or links from unknown sources, and add anti-malware software to your computer.

If you ever have reason to believe identifying information has been compromised, put a fraud alert or credit freeze on your credit report to stop new accounts from being created without a special code. Checking your credit report at least once a year and creating an account with the IRS will help you quickly identify misinformation and report it to one or all three credit bureaus.

When it’s time to file your taxes, find a trustworthy tax return preparation specialist. If using an online service, make sure it uses software that protects your information.

Protect your identity by trusting Dave’s Bookkeeping and Tax Service to handle your return. These accountants provide bookkeeping, payroll, and tax return preparation services to small businesses and individuals in Quakertown, PA. All returns are prepared by Certified Public Accountants and Enrolled Agents and use secure electronic document sharing. Call them today at (267) 212-6491 to schedule an appointment, and visit their website to learn more about their services.