Tax season is officially underway, and it's a good time to not only get your papers, receipts and documents in order, but also be proactive in protecting your identity.
Preventing identity theft should be a year-round effort.Ian Lyngklip is a consumer lawyer in Oak Park. He said his office gets calls every day from people who have problems with accounts that are not theirs showing up on their credit report.
He recommends you set up a credit file on your computer where you can put all your credit-related information in one place.
"The reason you need it is because people have a lot of accounts that they may not remember. You know, they open credit cards, they close them, they change them because they like the points or the benefits," Lyngklip said.
He also suggests you review your credit reports — for free — through AnnualCreditReport.com to look for mistakes or irregularities.
Also, you can freeze your credit to prevent new fraudulent accounts in your name. Just contact Equifax, Experian and TransUnion for a step-by-step guide.
You can also use a password manager like 1Password, Keeper, or Dashlane.
During tax season, if you're using online tax preparation products or hiring a tax professional, opt for multi-factor authentication to securely access an account. It's optional, and prompts you to enter a username, password, and a number texted to your cell phone.
Tax-related identity theft happens when someone uses your personal information to file a tax return claiming a fraudulent refund.
If you can't e-file because of a duplicate Social Security Number, among other red flags, you'll need to take action.
- Respond immediately to any IRS notice in the mail, and call the number provided
- If necessary, Form 14039, the Identity Theft Affidavit, is a fillable form at IRS.gov that can be printed and attached to your return, then mailed in
Be vigilant about protecting your data and your identity.
Remember, theIRS will never initiate contact with you by email, text, or social media to request personal or financial information.
The IRS will never call, email, or text to request your Taxpayer Identity Protection PINs.
If you suspect you've been a victim of tax-related identity theft, you still have to pay your taxes and file your return on time, even if it's a paper return you have to mail in.
Consumers who have experienced identity theft an also report it to the Federal Trade Commission. You can request a personalized recovery plan from the FTC at identitytheft.gov.
