Protect Yourself From Tax ID Theft: Keep Scammers out of Your Refund

Before you start planning what to do with your refund, let’s talk about tax identity theft.

The IRS would never text you. Jack_the_sparow/Shutterstock

Ah, tax season. That magical time of year when we all attempt to decipher the mystical language of IRS forms while hoping the government gives us back some of our own money. Before you start planning what to do with your refund, let’s talk about tax identity theft.

Tax ID theft happens when a fraudster files a fake return in your name to steal your refund.

The good news? You can protect yourself. Here’s how:

1. File Early

The longer you wait, the more time fraudsters have to beat you to your refund.

What to Do:

• Start tax prep ASAP—even if you don’t file right away.
• Use trusted tax software or a professional.
• Opt for direct deposit so your refund goes straight to your bank.

2. Guard Your Social Security Number

Your SSN is a golden ticket for scammers. If they get it, they can impersonate you in ways you don’t want.

What to Do:

• Shred documents with your SSN before tossing them.
• Never carry your Social Security card in your wallet.
• Ignore calls, emails, or texts claiming to be from the IRS—the IRS doesn’t operate that way.

3. Beware of Phishing Scams

Phishing emails and fake IRS websites are designed to trick you into revealing personal info. The IRS doesn’t email—ever.

What to Do:

• Never click on links in emails claiming to be from the IRS. Go directly to irs.gov.
• Watch out for urgent, threatening language—legit IRS notices don’t sound like ransom notes.
• Report suspicious emails to [email protected].

4. Get an Identity Protection Pin

The IRS offers a PIN that prevents scammers from filing a return in your name.

What to Do:

• Apply for an IP PIN at irs.gov/ippin.
• Keep your PIN secure—you'll need it every year.

5. Monitor Your Tax Account

Even if you do everything right, keep an eye on your tax records.

What to Do:

• Create an IRS account and check periodically.
• If you get an IRS notice about a return you didn’t file, act fast.
• Check your credit reports for signs of identity theft at annualcreditreport.com.

6. Use Strong Passwords and Two-Factor Authentication

Scammers don’t just steal SSNs—they hack tax software too.

What to Do:

• Use strong, unique passwords for financial accounts.
• Enable two-factor authentication.
• Avoid public Wi-Fi when accessing tax information.

7. Know the Warning Signs of Tax ID Theft

You may be a victim if:

• The IRS says more than one return was filed in your name.
• You receive a W-2 or 1099 from an unknown employer.
• The IRS claims you owe taxes on income you never earned.

8. What To Do if You’re a Victim

If you suspect tax ID fraud:

• File Form 14039 (Identity Theft Affidavit) at irs.gov.
• Call the IRS Identity Theft Hotline at 1-800-908-4490.
• Alert the Federal Trade Commission at identitytheft.gov.
• Contact your bank and credit bureaus to put fraud alerts on your accounts.

Tax ID theft is a hassle no one wants, but a few smart moves can keep scammers from cashing in on your refund. File early, protect your SSN and stay skeptical of IRS lookalikes. Because the only person who should be filing your tax return is you—not scammer with dollar signs in their eyes.

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