***Tax Time is also Opportune Time for Identity Thieves

It’s that time of year again. It’s tax time! Though many taxpayers may dread filing a return, and many of us would gladly welcome a refund, there are others ready to take advantage of this time of year: identity thieves. Especially now, you have to keep a tight grip on your personal information, or you could find yourself up against the IRS.nnWe are all much more vulnerable to identity theft during tax season. Scammers know that by late January and early February, valuable personal information such as W-2’s, 1099’s, and end-of-year statements are being delivered through the mail. Early tax returns are getting filed both via the US Postal Service and electronically. This spike in activity provides additional points of vulnerability for consumers. Criminals have created new and innovative methods to either get their hands on your personal information or trick you into divulging it by pretending to be an official from the IRS.nnDid you know that your tax return could be rejected? That’s right—refused by the IRS. More and more taxpayers are finding out their tax return was rejected by the IRS when it was entered for processing. This rejection usually means someone else has filed a return using your social security number and personal information. In fact, there have been so many scams of this sort reported to the IRS that they’ve now opened a new office designed to deal exclusively with scams, fraud and identity theft.nnSo during tax season, you need to step up your vigilance. On the bright side, there are plenty of things you can do to lower the risk that you will become a victim of tax-time identity theft.nnUse common sense nWork with a reliable tax preparation company. Don’t place returns in your mail box for pick-up—take them to the post office instead.nnMake sure your computer is safenUpdate all the security features on your home computer, especially if you are handling your own return and filing electronically. Also make sure that you don’t have any peer-to-peer software on your system since this could act as an entry point for hackers, providing an opportunity for someone to bypass your computer security and copy items from your home system, including photos and important documents. Tax preparation software in itself does not put you at risk for identity theft, but a lack of security on your home computer or laptop certainly could cause problems.nnDon’t get phishednYou should never take phone calls or click on links embedded in emails from persons who claim to be IRS agents. If you do, you could be the victim of “phishing.” Phishing is a technique used by identity thieves to get you to divulge personal information. This time of year the scammers will be posing as representatives of the IRS. A typical scam e-mail might attempt to notify the taxpayer of an outstanding refund and urge the taxpayer to click on a link taking them to a fake but official-looking website. The fake website then either downloads malicious spyware or solicits personal information. It is important to note the IRS does not use e-mail to initiate contact with taxpayers and the official website will always refer to .gov –such as IRS.gov. If you have any doubt whether a call or email is authentic contact the IRS directly. Take the time to look up the official number.nnWatch out for Return Preparer FraudnStick with trusted and reputable tax preparers. Dishonest return preparers make their money by skimming a portion of their clients' refunds and charging inflated fees for return preparation services. They attract new clients by promising large refunds. Taxpayers should choose carefully when hiring a tax preparer. nnTake steps to protect your informationnTake the necessary time to place proactive safeguards. The best way to avoid an identity theft is to plan for one! If you aren’t prepared to deal with both prevention and restoration, then make it easy on yourself and hire a company like LifeLock to do it for you. Their system places multiple layers of protection, reduces your overall risks and guarantees a complete support system in the case of an actual identity theft. If you prefer to go it alone there are a few things you can do to minimize your risk such as obtain copies of your credit reports at annualcreditreport.com, freeze your credit file or activate fraud alerts by contacting the credit bureaus and stay informed of the latest scams.nnThat’s the bright side. Now for the not-so-bright side... there isn’t really anything a consumer can do to keep another person from filing a tax return. The IRS doesn’t have the means to validate on the spot whether the person filing the tax return is the rightful owner of the personal information provided. You need to focus on prevention. Look for the warning signs that someone is using your information and begin the long process of fixing the problem … if it can be fixed at all.nnSuspected tax fraud can be reported to the IRS Web site at IRS.gov, or by calling 1-800-829-3676. The identity of the person filing the report can be kept confidential. The person may also be entitled to a reward.nnContributing Sources: LifeLock, IRS.gov, FTC.govnn