How To Deal With Tax Identity Theft

Tax Identity TheftBelieve it or not, E&Y Tax Preparation Services deals with more tax identity theft than you would imagine. Thousands of Metro Detroiters are subject to tax identity fraud every year, and we want to offer some solutions if you feel you’ve been targeted.

Many people think that tax identity theft is solely based on your credit score being compromised. However, loans and credit are not the only area considered with tax identity fraud.

In just the past two year, the IRS stated that over 1 million Americans were victims to tax identity theft. Their IRS believes that these numbers will keep increasing every year, as technology advances to a level that makes hacking an easier form of theft. Out of all of the complaints that the FTC and the IRS deal with, nearly half are associated with tax identity theft.

If you’ve been targeted in a tax identity scandal, filing your taxes is no longer an easy process. Studies have shown it can take years to properly clean your record of any mishaps that happened along the way. The biggest problem with tax identity theft is that many people are not aware they are victims, until it is too late. The IRS will end up sending you a filing that is incorrect, and that’s how you’ll know someone else attempted to file in your name.

How can you help prevent tax identity theft from becoming an issue for you? Here are a few ways to keep your credit, loans, and scores, safe from the intruders.

  1. Stop giving your Social Security Number to just anyone – Businesses don’t necessarily need your SSN to process their system. Make sure to ask if it is absolutely required, when you are purchasing items.
  2. Don’t carry around your Social Security Card – This important document, along with equally important pieces of paper, should be kept locked away and safe from intruders.
  3. Check your credit report every year – Each year, you are allowed one free credit report. Don’t get caught not knowing where you numbers stand, and stay in the know!
  4. Put up firewalls for your computer –Just like homeowners insurance, keep your computers protected from hackers with firewalls, virus scanners, an anti-spam programs. If you feel that someone has compromised with your computer, make sure to clear your information and change your passwords.
  5. Keep personal information for those who truly need it – If you need to give personal information over the phone, through an email, or even written down, make sure you know who’s hands it is going to. Don’t leave this information up to chance and ending up in a dangerous situation.

If you feel that you’re a victim of tax identity theft, give E&Y Tax Preparation Services a call today. We’ll help you sort out the sticky mess and get you back on track to a cleaner credit score! (248) 362-1313