Putting off filing federal income taxes can be costly even for those expecting a return. If you get a late start, scammers may have more time to take your tax refund.
However, the Internal Revenue Service now provides a second degree of security (IRS). Imagine receiving a letter from the IRS informing you that two tax returns have been filed using your SSN.
You’re Near To Getting Your Tax Refund
This indicates that scammers obtained your information and filed before you, typically to take your tax refund.
Angela Guth, executive director of the SWLA BBB, stated, It may happen very quickly to some taxpayers, and they don’t even realize their information has been hacked until they complete their tax return.
Guth described three common methods by which con artists obtain personal information. Occasionally, the bad guys obtain your information through phishing, a fraudulent tax preparer, or a data breach.
Additionally, the IRS has a new measure to protect you. It is known as an Identity Protection PIN.
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What Is IP PIN?
Some taxpayers are required to have an IP PIN, specifically those whose Social Security numbers have been used illegally in the past.
Whether these victims discovered the identity theft or refund fraud on their own or were contacted by the IRS, they were assigned a number to guarantee that any future contact was legitimate.
Since then, the Taxpayer First Act has expanded the availability of the IP PIN to others and ensured that affected taxpayers receive notification for a variety of scenarios:
- Suspicion of unauthorized use of their or their dependents’ identities
- The opening of an investigation into illegal activity and updates on the probe’s progress
- Determination of whether an investigation had confirmed unauthorized use of the taxpayer’s identity
- Actions taken, including identity theft referrals, will be communicated.
The IRS is expected to give the warning swiftly so that the fraud victim has the option of commencing their own legal action.
In addition, the IRS will only contact you via letter, not by phone. Also, con artists can employ the same methods against businesses provided they obtain a federal Tax I.D.
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