(NewsNation) — Nearly two-thirds of people worry scammers will steal their personal information to file a fraudulent tax return, according to an Allstate Insurance survey.
Tax identity theft occurs when someone files a fraudulent tax return in someone else's name using their social security inf
ormation, hoping to pocket the money on the return.
Tax refund theft takes, on average, 22 months to resolve, but wary taxpayers can take a few preventative steps to take to avoid becoming victims.
Financial experts recommend filing your return as soon as possible to narrow the window of time a fraudster has to file a return in someone else's name. April 15 is the deadline to file a tax return for income made in 2024.
The Internal Revenue Service (IRS) also recommends obtaining an identity protection PIN, or IP PIN, which is a six-digit number issued by the IRS to attach to your tax return. Victims of tax-related fraud must provide this number on each subsequent tax return, but taxpayers can also request a number proactively for an extra layer of security.
Taxpayers can request an IP PIN on the IRS website, and will receive a notice in the mail with a new one each year.
The internet can be a scammer's best friend, but it doesn't have to be. Healthy internet habits can further help to prevent fraud. Maintain online accounts with strong passwords that might be easy to remember, but not so easy to hack. Taxpayers who regularly file online should always avoid clicking suspicious links, and consider using anti-virus software. ...read more read less
