Helpful Tips |

Kick Off the New Year Safeguarded Against Tax Identity Theft

The start of a new year is the perfect opportunity to refresh your goals and prioritize your financial security—including protecting yourself from tax identity theft. This growing crime affects thousands of Americans annually, especially during the busy tax season when fraudsters strike early.

What is Tax Identity Theft?
The IRS defines tax-related identity theft as the unauthorized use of stolen personal information, such as your Social Security number (SSN), to file a fraudulent tax return and claim a refund. Scammers can file false returns even with incorrect spellings of your name, and once a fraudulent account is created, it can be used to redirect your refund and even future federal payments. Funds are often routed to untraceable prepaid debit cards, making recovery nearly impossible.

To help you stay protected, here are some proactive steps to reduce your risk of falling victim to tax-related identity theft:

1. Safeguard Your Personal Information

  • Keep your SSN or individual tax identification number (ITIN) in a secure location, sharing it only when necessary and with verified entities.
  • Ensure your home computer and devices are equipped with up-to-date security software. Don’t overlook updates for items like smartwatches, which can also be targeted.

2. File Taxes Early and Securely

  • Filing your taxes as soon as you receive all necessary documentation makes it harder for scammers to beat you to it.
  • Use a reputable tax service or IRS Free File Guided Tax Software to submit your return.
  • If filing online, always use a secure internet connection and avoid public Wi-Fi.
  • If you prefer working with a professional, choose your tax preparer carefully.

3. Monitor Financial Accounts and Correspondence

  • Regularly review account statements for unusual activity.
  • Watch for IRS letters indicating a return has already been filed with your SSN—this can be a key warning sign.
  • Pay attention to any tax documents from unfamiliar employers, which could indicate fraudulent use of your identity.

4. Be Cautious When Communicating

  • Avoid responding to unsolicited emails, calls, or texts requesting personal or financial information.
  • Remember: The IRS does not initiate contact via email, text, or social media and will never threaten you with lawsuits or arrests.

5. Set Up and Monitor an Online IRS Account

  • Create an account on the IRS website to monitor your tax activity throughout the year.
  • Consider requesting an Identity Protection PIN (IP PIN) through your IRS account. This unique PIN ensures only returns with the correct code can be filed under your SSN.

At Peshtigo National Bank, we’re here to support you in protecting your financial well-being. Safeguard your identity, stay informed, and make this tax season worry-free!

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