Protect Your Sensitive Information This Tax Season

Tax season can be a heightened season for scammers and identity thieves, that part with perhaps your money or some of your personal information. 

“[For example], agencies like the IRS, they don't call you up and then come take your house,” noted Andrew Zumwalt of University of Missouri Extension.  “With the IRS, they're going to be sending you lots of letters.  There's going to be lots of interactions.  They don't just come and take your house as a first step.” 

That Zumwalt said is one of several pressure tactics scammers apply to obtain details like social security numbers and bank account information or to have money sent by a non-traditional service in an expedited manner. 

More Opportunities Exist This Time Of Year

“Tax season is huge because with a tax return there are so many opportunities to apply for credits or other opportunities to maybe use a child's social security number that isn't your child and try and claim a credit or other tax benefit based on that person or even claiming another person who isn't necessarily a child,” Zumwalt said.  “So there's a lot of fraud that can happen in the tax world.” 

So, what are some methods to prevent yourself, or someone, from being a victim of scams or identity theft associated with taxes and tax returns? Zumwalt starts with you receiving a questionable phone call, maybe a threat of legal action by a so-called government agency, or a call to resolve tax debts, but needed first is some of your private information.  His suggestion, hang up the phone on this questionable call or solicitation and get trusted advice. 

Watch Out For Loved Ones & Friends

“Have a loved one or someone that you trust that you can call and say, ‘Hey, I just got this phone call and I just don't know what to do’. And really help navigate these scams so that you can avoid them.” 

A preventative measure regarding your tax returns both now and in the future. 

“Apply with the IRS for an identity protection PIN.  Essentially, you'll be sent that PIN in December and then you'll need that in the following tax filing season in order to electronically file your return.  And that's an amazingly powerful tool.  Essentially, you have the one number in order to file a return.  And so anybody else who tries to file their return will reject electronically.  And so it's a very tight security on your return.” 

How Long Should You Keep Your Documents?

As for any tax returns or documentation, the Internal Revenue Service recommends keeping records between three to seven years, dependent on the type of documentation per IRS guidelines.  In some cases, tax returns and records may need to be kept longer than IRS guidelines if other entities, like insurance companies, creditors, or state governments require you to for their purposes. Once tax documents are no longer needed, shredding and discarding the documents to prevent identity theft is encouraged. 

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