Small Business Taxes & ManagementTM--Copyright 2015, A/N Group, Inc.
Easy Steps to Take
Identity theft is pervasive and can cause substantial problems for victims. The IRS is aware of this, and is also in an indirect way, a victim. Identity thieves file refund claims based on fraudulent withholdings. The IRS has issued a list of seven steps you can take for making identity protection part of your routine. We've added 12 to make the list below. We've also included links to IRS web pages that can provide additional information.
1. Read your credit card and banking statements carefully and often--watch for even the smallest charge that appears suspicious. (Neither your credit card nor bank--nor the IRS--will send you emails asking for sensitive personal and financial information such as asking you to update your account.) Can you access your accounts online? If so, check more frequently than monthly. The quicker you discover a problem, the better.
2. Review and respond to all notices and correspondence from the IRS or state. Warning signs of tax-related identity theft can include IRS notices about tax returns you did not file, income you did not receive or employers you’ve never heard of or where you’ve never worked. The same advice applies to correspondence from banks, credit card issuers, etc.
3. Review each of your three credit reports at least once a year. Visit annualcreditreport.com to get your free reports.
4. Review your annual Social Security income statement for excessive income reported. You can sign up for an electronic account at www.SSA.gov.
5. Read your health insurance statements; look for claims you never filed or care you never received.
6. Shred any documents with personal and financial information. Never toss documents with your personally identifiable information, especially your social security number, in the trash.
7. If you receive any routine federal deposit such as Social Security Administrator or Department of Veterans Affairs benefits, you probably receive those deposits electronically. You can use the same direct deposit process for your federal and state tax refund. Consider using direct deposit for other purposes such as paychecks, dividend payments, etc.
8. Check your mailbox (U.S. Postal Service) daily. Mail can still be stolen, but it lessens your chances and the more mail a thief can acquire, the more information he's got.
9. Don't carry a big balance in your checking account. A thief may be able to access the account with your bank routing and account number. Need to write a big check? Transfer the money from an account that's not accessible online or by check.
10. Guard your credit and debit cards. Don't carry more cards on your person than you have to. There are many ways for a thief to get your card info, but if you make it difficult he'll move on to an easier target. Most thieves don't like to work any harder than they have to.
11. Use secure passwords--eight letter/character combinations are a minimum. More are better. Use both upper and lower case and include a special symbol. Don't use personal info (e.g., birth date) or common words. Change the password on important accounts at least quarterly.
12. In addition to avoiding public wi-fi, use your laptop/tablet/phone with caution. Make sure no one is watching over your shoulder in public. Password protect your home wi-fi.
13. Use virus/firewall/malware protection on your computer and tablet. Make sure the antivirus program is update regularly (most programs issue updates every day or two). Antivirus programs are inexpensive and there's frequently a deal. Make sure they're active and working.
14. If the web site looks suspicious, don't access it.
15. Don't clink on links in emails you don't know. Watch for bogus web sites. You can usually spot them. They try to look like an official site (such as a bank), but the colors seem off, the grammar and spelling aren't perfect, and they may ask for information the true site hadn't in the past. Check the web address. You may want to go to MadisonBank.com, but you ended up on is MadisonsBank.com.
16. Don't give out information on the phone unless you initiate the call.
17. Avoid providing personal information (e.g., first dog, color of first car) on a personal media site if you use the same info when accessing a bank account, etc.
18. Stores want you to use their credit card, but think twice. Getting $15 off your current purchase isn't worth the hassle. (Many of those cards carry a high interest rate.) On the other hand, one big box store gives 5% off every purchase and you're spending more than $250 a month there. That makes sense.
19. Even if Mom and Dad are regular computer users, they can still fall for some of the traps. Take some time to help them out. The same goes for some younger relatives and friends who are not computer savvy.
To learn additional steps you can take to protect your personal and financial data, visit Taxes. Security. Together. You also can read Publication 4524, Security Awareness for Taxpayers.
Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on IRS.gov.
IRS Resources
Taxpayer Guide to Identity Theft
IRS Publication 5027Identity Protection: Prevention, Detection and Victim Assistance
Copyright 2015 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The information is not necessarily a complete summary of all materials on the subject. Copyright is not claimed on material from U.S. Government sources.--ISSN 1089-1536
--Last Update 12/08/15