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Waiting to file taxes leaves you vulnerable for this scam

Waiting to file taxes leaves you vulnerable for this scam

By Adam Garber

Philadelphia-- The only thing more annoying then spending a bunch of time filling out tax forms? Afterwards finding out someone filing a return on your behalf to try and pocket the money.

But that’s exactly what the FTC, Better Business Bureau (BBB) and others are talking about during Tax Identity Theft Awareness Week.

According to the BBB, IRS imposters will use your social security number, birthdate or other information to file the taxes. And because of that, victims are often unaware of the theft. That is until the IRS sends a letter saying there are two tax filings on record.  

And with data breaches so common, and 147 million people’s financial information stolen during Equifax, most people should assume their financial DNA has been stolen. So how do you avoid such tax scams?

  • Beat scammers to the punch by filing early

  • Protect your Social Security Number: While those calls about your SSN being suspended are false, it could have been stolen. Never give out your number unless you’re sure of who you are giving it to and it’s absolutely necessary. Force them to verify their identity by providing the last four digits (some institutions will have that), call you back, or return the call through an official number.

  • Red flags: If the IRS sends you a notice about a duplicate response, don’t ignore it. Respond promptly. You may also receive a notice from the IRS on other issues that could impact your taxes, suggesting someone may be trying to scam you.

  • Use secure internet connections if you’re filing your taxes or providing critical information. 

  • Research your tax preparer before handing over critical information. Websites like BBB, yelp and elsewhere may provide information on whether they are trustworthy.

Despite all these efforts, you can still fall victim to a tax scam. It happens every year, and prevention is sometimes not enough. 

If you are the victim of a tax scam, then call the IRS at 1-800-908-4490. You can also file a complaint with the Federal Trade Commission (FTC) http://ftc.gov/complaint or 1-877-FTC-HELP. Personalized identity theft recovery plans can be found at identitytheft.gov.

www.ftc.gov

www.ftc.gov

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