As the new year begins, so does a new season - tax season. January through April is prime time for identity thieves looking to file fraudulent tax returns. Criminals often target their victims just before or after companies issue W-2 statements.

Tax-related identity theft remains the most common type of identity theft, according to the Federal Trade Commission. Protecting your Social Security number (SSN) and personal tax information is essential. If you e-file, the IRS has implemented additional safeguards to combat fraud.

Email and phone scams are common tools for tax-related fraud, with criminals often posing as IRS representatives to trick victims. These scammers may provide stolen details, such as the last four digits of your SSN or a fake badge number, to appear legitimate. They frequently pressure individuals into wiring money or using prepaid debit cards to pay alleged debts.

Fortunately, you can take simple yet effective steps to protect yourself from falling victim to these scams:

  • Implement a PIN. As an extra layer of protection, the IRS offers an optional PIN for all taxpayers who can verify their identity. This one-year PIN helps prevent scammers from filing a return with your SSN because it allows the IRS to confirm your identity when you file electronically or by mail. 
  • File early. The IRS will only accept one single return for each SSN. Filing early can help limit the possibility of a criminal using your SSN to file a false return. 
  • Be vigilant and skeptical. Never open a link or attachment from an unknown or suspicious source. Even if the email is from a known source, the recipient should approach with caution. 
  • Remember that the IRS won't spontaneously ask taxpayers for personal or financial information by email. This also includes asking for information via text message and social media channels. The IRS does not call taxpayers with aggressive threats of lawsuits or arrests.
  • Use strong passwords and multi-factor authentication (MFA). Experts recommend using a minimum of ten digits, including letters, numbers, and special characters. In addition, always enable MFA when provided to add an extra layer of security. 
  • Beware of misleading tax advice on social media. Inaccurate advice online increasingly leads people to file incorrect tax returns.
  • Verify payment details. If you owe the IRS, confirm payment instructions directly with the agency using a verified phone number from their official website or by consulting a trusted source. 
  • Report phishing scams. Taxpayers can forward suspicious emails to phishing@irs.gov.

Despite best efforts to hinder criminals, you may become a victim of identity theft and tax fraud. If this happens to you, the IRS has published guidance to assist you in overcoming it. The California Attorney General also has helpful information here.

Remember, the risk of identity theft and tax fraud doesn't stop after April 15 and will continue throughout the year. Always stay vigilant and take steps to protect yourself and your personal information online.