Top 6 Tax Scams and How to Protect Yourself

No. 1: Identity theft

Although identity theft has been around for quite some time, we should be seeing an increase of this activity in 2014. More often than not, identity theft refers to the use of a taxpayer’s identity so as to illegally claim a tax refund. The only way someone can claim your identity is if they somehow get their hands on your social security number, so make sure you protect this very valuable information. Here is what IRS says about identity theft:

“The IRS has a special section on IRS.gov dedicated to identity theft issues, including YouTube videos, tips for taxpayers and an assistance guide. For victims, the information includes how to contact the IRS Identity Protection Specialized Unit. For other taxpayers, there are tips on how taxpayers can protect themselves against identity theft.

Taxpayers who believe they are at risk of identity theft due to lost or stolen personal information should contact the IRS immediately so the agency can take action to secure their tax account. Taxpayers can call the IRS Identity Protection Specialized Unit at 800-908-4490. More information can be found on the special identity protection page.”

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