File taxes early to avoid identity theft

Thieves can steal your identity in a myriad of ways, but the most popular is through tax filing. Methods of tax identity theft vary, from the utilization of your stolen Social Security number, to mail theft, to defrauding of professional tax preparers. As a taxpayer, you need to take certain precautions to insure that you don’t play into the hands of scammers.

Don’t dally

Speed is of the essence when it comes to avoiding taxpayer identity theft. Essentially, this means the quicker you file your taxes, the less chance you will be victimized. Once you have acquired your tax documents from your employers, file with the IRS. In fact, file electronically if possible. Remember: You are in a race with identity thieves. If they beat you to the punch, the long ordeal of clearing up the matter with the IRS must commence. Many wait until the last minute to file and that’s exactly what crooks are counting on.

Employers have to get a W-2 or 1099 forms to you no later than Jan. 31. Most employers mail the forms to you. Once you have it, read it carefully to be sure all information is correct, especially your Social Security number and the spelling of your name.

If you do not receive your forms from the employer by Jan. 31, check with them. If there is a problem that isn’t cleared up right away, notify the IRS and check into using Form 4852, Substitute for Form W-2.

Tax preparers

Scammers attempt to trick tax preparers into downloading malware that allows them to get to their clients’ information. They pretend to be legitimate software companies sending emails that ask the preparer to download and install “software updates.” Clicking on the link installs spyware that enables them to steal log-in details, passwords and other information about the preparer’s clients. (Tax professionals should go to irs.gov for information about securing their clients’ data.)

Taxpayers should always research any tax preparer before hiring them. Two important ways of doing this are by checking out the company at bbb.org, and by using your search engine to look them up. Check their record of dealing with customer complaints at the BBB’s website, and then do the same thing with an internet search for their name plus words like “reviews” and “complaints.”

Safeguard your information

A Social Security number is like gold to a scammer. It can be used to defraud the IRS when someone reports it as their number to an employer. You then find out about it at tax time, seeing all those wages that you have to pay taxes on though you know you were not employed by that company.

Remember these tips to keep your information out of the wrong hands:

▪  Never give out your Social Security number to someone you do not know. If you are asked to share it, question why they want it. Don’t be too quick to believe the answers either, especially if they are strangers.

▪ Shred all paperwork that has your information on it before throwing it away.

▪  Don’t carry your Social Security card.

▪  Keep anti-virus and other security software on electronic devices updated.

This story was originally published January 11, 2018 at 5:05 PM with the headline "File taxes early to avoid identity theft."