This is the time of year that we all need to be especially careful of being scammed. Tardy & Co., PC recently got alerts from some of our partners that even CPAs and other tax return preparers are being targeted.
If you wondered why tax information is a priority for identity thieves it’s because, using your personal information, scammers file fake tax returns with a refund under your name and hope that the check arrives before you actually file. When you go to file your real tax return, the IRS will end up rejecting it.
60 Minutes on CBS ran a report in 2014 reporting that this scam cost taxpayers $5.2 billion.
We guard your information zealously, such as using secure file transfer services when we send and receive documents from our clients. Here are some suggestions for you to avoid being targeted, from both us and the IRS:
- Guard your personal information. Identity thieves can get your information by stealing your wallet or purse, going through your trash, or posing as someone who needs your information for a legitimate reason. So shred documents with personal information on them when you trash them, don’t carry your social security card or number around in your wallet, and use reputable accountants and lawyers.
- Watch out for IRS impersonators. Don’t fall for phone calls or faxes from the IRS: the IRS communicates primarily by letter, and they would never demand immediate payment by credit card, money order, and definitely would never ask for a gift card. If you’re a client of a tax accountant, the IRS will probably communicate through us.
- Be especially careful of emails. Don’t click on links or open attachments from anyone claiming to be the IRS. Doing that may allow thieves to install programs on your computer that will allow them to steal your personal information. Don’t even respond to those message, delete them or use the “Report” button in your email to get rid of them permanently.
- Secure your information on your computer. If you have tax information on your computer, password protect it, and once you’re done with it you really should delete it. Keep a paper copy in a safe place (like a safe).
- If you have more questions on this, you can check out the IRS website which has many articles addressing phishing and other scams (here’s one of them). Using the search box at the top of the site you can search for “phishing” and that will pull up lots more. If you get a suspicious email, help the IRS by emailing them at [email protected]
Keep your information safe by thinking before you act, and if you’re not sure, reach out to other people to ask what they think.