What is the tax identity theft?
Fiscal Identity theft occurs when an identity thief steals personal information from one person to file a statement of bogus revenue. They can then apply for reimbursement before the taxpayer has a chance to produce a legitimate tax return. Victims are usually not aware of a declaration of fraudulent revenue was filed on their behalf until they try to file their own taxes and are warned of fraudulent by the IRS.
How can tax identity theft be prevented?
As identity theft in general, there is no sure way to prevent the tax identity theft, but there are steps that taxpayers can take to reduce their chances of to be a victim. One of the best ways to avoid the tax identity theft is to produce tax returns as soon as you receive all necessary tax forms. By filing taxes early, taxpayers give identity thieves less time to file a false tax return on their behalf. Here are some ways that taxpayers can help protect themselves against tax identity theft.
Is there a way to avoid tax scams in general
Most detailed scams dirty dozen IRS - Such as phone scams, phishing scams posing as charities and promises of free money - can be avoided if a taxpayer following the steps detailed below.
1. Do not click on unknown links in emails: Most people fall for phishing scams by clicking a familiar link or accidentally enter their information personal in a phishing site designed to steal a person's information. The best way to avoid this scam is to not open emails from a familiar sender or click unknown links. Also remember that the IRS does not contact taxpayers by e-mail, so that any email received from the "IRS" should immediately be marked as spam.
2. Research charities: Many taxpayers donate to charities to help an organization or cause they are passionate about. These gifts can often be amortized on a tax return, as it is a legitimate organization. The problem is that thieves create fake charities or formed as a charity in order to steal money from people. One way that taxpayers can avoid giving money to a fake charity is to check its legitimacy with the Better Business Bureau - a nonprofit organization working to strengthen market confidence through reliable examinations a variety of companies and organizations - and always give money through the charity of the site to make sure that the money goes directly to the organization.
3. Know that asks for personal information: Phone scams occur when an identity thief calls a potential victim while posing as a legitimate company with the hope to collect all human information. To avoid this scam, taxpayers should make sure they know that their information request. If the person on the phone said that they are in a doctor's office or the IRS, the taxpayer should not provide any information. However, the taxpayer must hang up the phone, find the business' phone number (using Google or other professional directory like WhitePages) and call the company back. If the company, the office or the government of the physician agency can verify that they have to collect caller information, the taxpayer can continue to provide the necessary information.
4. Remember the money is never free: It's easy to get excited about the idea of maybe getting free money, but taxpayers need to remember that money is rarely free. If you receive a call or an e-mail stating that someone will give you free money, ask about the company and why you get the money. If the person does not answer, it is more than likely a scam.
5. Be skeptical: The most important thing for taxpayers to remember is to be skeptical of anything that sounds too good to be true or anyone arises for one of their information. They should not be afraid to ask questions and to say no to anyone force them to provide personal information.
Although the tax scams are something that should worry the taxpayers during tax season, the reality is that anyone can be a victim of one of these scams throughout the year. Use the steps above to protect yourself against scams year, and to learn more about identity protection advice on the blog of protection against identity theft.