(NewsNation) — Nearly two-thirds of people worry scammers will steal their personal information to file a fraudulent tax return, according to an Allstate Insurance survey.
Tax identity theft occurs when someone files a fraudulent tax return in someone else’s name using their social security information to pocket the money on the return.
Tax refund theft takes, on average, 22 months to resolve, but here are some tips to avoid becoming a victim.
Financial experts recommend filing your return as soon as possible to narrow the window of time a fraudster has to file a return in someone else’s name. April 15 is the deadline to file a tax return for income made in 2024.
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The Internal Revenue Service recommends obtaining an identity protection PIN, or IP PIN, which is a six-digit number issued by the IRS to attach to your tax return. Victims of tax-related fraud must provide this number on each subsequent tax return, but taxpayers can also request a number proactively for an extra layer of security.
You can request an IP PIN on the IRS website, and you will receive a notice in the mail with a new one each year.
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The internet can be a scammer’s best friend, but it doesn’t have to be. Healthy internet habits can help prevent fraud. Maintain online accounts with strong passwords that you can remember but aren’t easy to hack. Protect your computer against viruses with anti-virus software, and avoid clicking suspicious links.
