Want a new fall tradition? How about voting for your favorite Fat Bear?
Katmai National Park in Alaska holds this contest every year to celebrate its brown, furry residents preparing for hibernation. If only all vote-casting was this fun and inconsequential.
Unfortunately, our friends in the southeast will not likely be voting in that particular contest, as they’ve got their hands overfull right now. Our thoughts and prayers are going out to all those affected by the devastating flooding that has literally washed entire areas and lives away. It’s almost unbelievable.
The IRS will likely offer tax extensions to those affected, and I’ll keep you informed as that becomes available.
There’s only so much preparation you can do for disasters like that. But there is preparation you can do to prevent other kinds of trouble.
Like tax identity theft, for one. That’s actually what I have to share with you today. While I feel like I talk about it fairly often with my Colorado Springs contacts, there are seemingly unending schemes and technologies to keep up with.
It’s a part of life that all of us would like to just go away. Who has time for identity theft (and hurricanes and flooding)?
But since I can’t make this particular crime go away for you, I can help you work to prevent it. Here are some things you can put in place now…
Some Ways Colorado Springs Taxpayers Can Prevent Tax Identity Theft
“An ounce of prevention is worth a pound of cure.” – Benjamin Franklin
“I’d never fall for that.”
These famous last words are said by thousands of taxpayers who get scammed by identity thieves every year (about 228,000, according to National Taxpayer Advocate).
How could you become a victim of tax identity theft? Well, a bad player will file a tax return using your personal identifying information. Believe me. I’ve seen it happen to some of my North Colorado Springs clients. Unfortunately, when this happens, you and the IRS won’t know until you go to (rightfully) file your return. At that point, the IRS opens an investigation to figure out which return is legitimate.
If this happens to you, prepare for the long haul. While some cases can be resolved in a few months, many cases in the IRS’s identity theft victim assistance unit can take up to two years to fully resolve, depending on the complexity (UGH!).
Now, don’t think tax identity theft won’t happen to you. The truth is, anyone with identification information is vulnerable (a SSN, a street address, an email address, medical records… I think you get the point).
And it’s not the elderly and tech-illiterate that scammers target in this case. It’s often young, tech-savvy taxpayers as well as high-net-worth individuals. The 20- and 30-somethings spend so much time online, they inevitably share more information than they probably should. And the wealthy because identity thieves have learned to follow the money. When you spread your money around, your data goes with it.
But it is possible to stop identity theft before it happens. The first step is to stay attuned to the common tax identity theft signs, such as:
- If you submit your tax return and then get a notice from the IRS that a return has already been filed under your SSN, look into it.
- You receive a transcript from the IRS that you didn’t ask for.
- You receive a CP301 notice (issued when you create an account on IRS.gov) from the IRS.
- Your IRS account gets closed unexpectedly. Scammers can obtain information by reopening closed accounts and accessing the forgotten data (and they can even get into your bank services).
- You get a “fake” IRS notice. There are only a few notices the IRS will send. These include notices about overdue balances, refund eligibility, tax return questions, identity verification forms, changes in returns, and delays to process returns.
The bottom line is this: Trust your gut. If something seems off, don’t ignore it. Contact the IRS immediately.
When you know the signs, then you can start shielding yourself from scammers. Here are five ways you can prevent tax identity theft:
File your taxes early. The busyness of tax season makes it an ideal time for scammers to strike. Beat them to the chase by filing your taxes as early as you can (you know our calendar is always more open in January and February).
Get an IP PIN. An Identity Protection PIN reinforces the security of your SSN. It’s a six-digit code only you and the IRS know that provides an extra level of defense against scammers. Set it up at IRS.gov/getanippin — or ask us.
Optimize security on your devices. I know it’s tedious, but you need to go through all the hoops here – use strong and complex passwords (that are different for each account), use multi-factor authentication as much as possible, install a firewall, and even use a VPN on your devices. You can also install fraud detection software to keep an eye out for scam attempts.
Beware of getting phished. Don’t download anything from suspicious emails or websites, don’t click unknown links, and don’t reply to texts or emails claiming to be the IRS. They’ll never initiate contact via email, text message, or social media.
Get to know the IRS. The IRS has strict rules regarding how they’ll communicate with you. Knowing what those rules are can help you not to fall for scam traps. For example: The IRS never communicates through social media or text messages, never demands immediate payments, and never asks for sensitive information without first mailing you a notice.
Good to know, right?
The key to preventing tax identity theft is to act now. Don’t wait until it’s too late. A little paranoia can go a long way, in this case.
We know keeping on top of all the necessary safety precautions can feel like a lot, but you’ll be thanking yourself later that you prioritized it. And I can help you check that all your bases are covered. Let’s sit down and chat to make sure your return won’t land in anyone else’s hands but yours come tax season.
719-260-0320
To sleeping easier,
Susan Wilklow