Deducting tax deceit before 2020's late filing deadline
Those who file their tax returns last-minute are at a greater risk of becoming identity theft victims.
As this year’s late tax filing deadline inches closer, many individuals may find themselves racing to file their tax returns after months of procrastination.
According to the Internal Revenue Service (IRS), about one in five tax filers wait until the very last week of tax season to file their taxes, leaving them — and their identities — in a dangerous spot.
Those who file their tax returns last-minute are at a greater risk of becoming a victim of identity theft because cybercriminals look to take advantage of tax filer procrastination. Through the use of crafty and complex scams, tax scammers look to trick filers into unknowingly giving away personal identification information (PII).
While some scams may seem obvious, cybercriminals are constantly evolving their schemes to appear more convincing. In fact, the IRS reported that $1.8 billion was stolen by cybercriminals during the most recent fiscal year. To protect yourself against tax fraud and identity theft this tax season, follow these safeguards.
The early bird gets the worm
Tax returns are processed by the IRS on a first-come, first-served basis, meaning the earlier an individual submits his or her tax return, the sooner he or she receives it. While filing taxes early may not stop tax fraud from occurring, it narrows the window of opportunity for scammers to rob filers of their tax return and identity.
Stick with big, credible and reputation
Using a reputable accountant or online filing service reduces the chance for filing errors and tends to be more secure. Avoid tax services that seem too good to be true, such as ones that promise a significantly higher refund or those who charge fees based on the value of your return. When looking for a tax preparer, always do research beforehand and check the company’s reputation on the Better Business Bureau’s website.
Don’t take the bait
Scammers frequently use website popups or phishing emails that contain a request for PII or malicious links/attachments. During the 2018 tax season, the IRS saw an approximately 60% surge in phishing and malware incidents. As convincing and professional as the emails or popups may seem, always use caution and never click on a link, open email attachments, or provide personal information to the “IRS.” To help combat these phishing scams, sign up for Scam Alerts from the FTC and verify the source of any communication directly with the person who contacted you.
Watch for imposters
One of the most common scams is when the “IRS” calls or emails you about your tax refund. In reality, the IRS will never contact you over the phone or email. If they do reach out, the IRS will never ask you for your social security number, credit card information or any other personal information via phone or email. The IRS will generally reach out through the mail.
Track your returns
Track your return using the IRS’s online tool. The website will allow you to check if a return has already been filed in your name, allowing people to act quickly to minimize or reverse the impact of fraudulent activity.
If you are looking to file your taxes safely and securely, trust your instincts. If something seems too good to be true, it most likely is. Remember to never give out personal information over the phone or via email, as the IRS will typically reach out via postal service. For added security and peace of mind, consider looking into a comprehensive identity protection plan with resolution experts at the ready, should you see those scary words, “A refund has already been issued in your name.”
Paige Schaffer (Paige.Schaffer@gga-usa.com) is CEO of the Identity and Digital Protection Services Global Unit for Generali Global Assistance. Schaffer leads sales & marketing strategy and revenue growth initiatives, managing operations as well as global expansion. Schaffer began her tenure with Generali Global Assistance in 2007 and led North America Operations for both the emergent Travel Assistance business and the Medical Claims division, working with insurers, medical providers, and government contractors. Schaffer is a thought leader on identity theft protection, resolution, and victimization.
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