Imagine you receive an IRS notice about a tax return you never filed. This could be a sign of identity theft. Identity thieves are always targeting your personal information, especially during emergencies like natural disasters. As we wrap up our September “Being Prepared” series, we’re sharing a few steps you can take to safeguard your tax accounts and avoid costly headaches.
Tax-Smart Ways to Prevent Identity Theft
- Enroll in the IRS Identity Protection PIN (IP PIN) Program
An IP PIN is a 6-digit number issued by the IRS that helps to prevent fraudulent returns from being e-filed using your Social Security number.- The IRS automatically rejects e-filed tax returns without your unique IP PIN
- The IP PIN changes every year for ongoing protection
Tax Tip: Anyone can join the IP PIN program, even if you haven’t been a victim. If you register for this program, please make sure to provide your tax preparer with a copy of the letter you will receive in January, so that they can include the IP PIN on your return.
- Know the Signs of Tax Identity Theft
Watch for these signs that someone may be misusing your tax information:- An IRS notice about a tax return you didn’t file
- A tax transcript (a summary of your tax records) you didn’t request
- A rejection when filing your taxes because a return was already submitted using your Social Security number
Action Step: If you spot these signs, file IRS Form 14039 (a form to report identity theft) and call the IRS Identity Protection Unit at 800-908-4490.
- Monitor Your IRS Account Online
Set up an IRS online account to track your tax information. You can view:- Your filing history
- Account balances
- IRS notices and letters
Tax Tip: This account helps you spot suspicious activity early and manage your taxes year-round.
- Secure Your Documents and Digital Life
It’s important to remain vigilant as identity thieves often exploit our bad habits. A few steps you can take to protect your information include:- Use strong, unique passwords and enable two-factor authentication on tax and financial accounts
- Store tax documents in a locked file or encrypted digital folder
- Avoid emailing sensitive documents unless encrypted
- Shred old tax records you no longer need
Tax Tip: Use a password manager or encrypted cloud storage for extra security.
Take Action Today
Tax identity theft can delay refunds, create stressful complications, and result in years of cleanup. By taking simple steps today, you can stay protected even during life’s most vulnerable moments.