Protect Yourself This Tax Season with These Tips

January 04, 2015

identity theft Beginning this month, the IRS will impose new limits on the number of refunds that can be deposited into an individual bank account in an effort to prevent identity theft. According to the Federal Trade Commission (FTC), tax- and wage-related fraud was the most common type of identity theft reported from 2011 to 2013.

Starting this tax season, the IRS will allow up to three refunds to be deposited into a single account or onto a single pre-paid debit card. After the third refund, the IRS will automatically issue a paper check that will be mailed to the recipient.

Tax identity theft scams are common because they can be done early in the season and it sometimes takes months before anyone realizes it has occurred. In addition, the ways thieves commit identity theft are constantly changing, making it hard to track.

To help you protect yourself this tax season, the experts at IdentityProtection.com shared four tips in the recent article, “IRS Imposes Direct Deposit Limits to Help Prevent Identity Theft.”

  • Leave your social security card and other important documents in a safe place. Memorizing the number so you don’t have to carry your social security card around with you will help reduce the possibility of it being lost or stolen.
  • The earlier your file your taxes, the less likely someone can commit tax identity theft using your information. Once a tax return has been filed under your social security number, another one cannot be filed. If tax identity fraud has occurred to you, the sooner you file your taxes, the sooner you’ll know and can begin to repair the damage.
  • It’s not uncommon to receive calls or messages from someone pretending they work for the IRS. Typically, the IRS will first contact you via mail, and they won’t ask for payment using a pre-paid debit card or a wire transfer, or personal or financial information. If you believe you have been contacted by someone impersonating an IRS representative, contact the IRS immediately.
  • Keep your information safe by only sharing your social security number when it’s absolutely necessary. If you’re asked to provide this information to a business or online, always ask why it’s needed and how the company plans to secure your information.

To learn more information about how to protect yourself from identity theft, visit www.IdentityProtection.com.

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