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Protect Yourself and Your Data

It can be scary out there. Identity theft can be a painful experience, both financially and emotionally. But an ounce of prevention is worth a pound of cure.

Be aware and do these things before something bad happens

Some of the scariest thefts are tax-related ID theft which occur when someone uses a taxpayer’s stolen personal information to file a tax return claiming a fraudulent refund. The thieves use personal information like a stolen Social Security number.

The IRS and its partners are constantly working to combat these types of crimes, but they can’t do it alone. We as taxpayers must do our part to protect our own data.

Here are some tips:

  • Always use security software. This software should have firewall and anti-virus protections.
  • Use strong, unique passwords. They should also consider using a password manager.
  • Learn to recognize and avoid phishing emails, threatening calls and texts from thieves. These scammers pose as legitimate organizations such as banks, credit card companies, and even the IRS.
  • Not click on links in unsolicited emails or messages from unknown senders. Also, people shouldn’t click on links or download attachments from emails that seem suspicious, even if they appear to be from senders they know.
  • Protect personal information and that of any dependents. For example, people shouldn’t routinely carry around their Social Security cards. They should also make sure tax records are secure.

The IRS provides some information at its website and in its publications that can help you protect yourself. You can also visit the FTC’s Consumer site and find a wealth of information on how to protect yourself and what to do if your identity is stolen.

IRS information:
Publication 4524, Security Awareness for Taxpayers
Identity Theft Central
Taxpayer Guide to Identity Theft

Use Multi-Factor Authentication the IRS Urges

Yes, it is the busy season for tax preparers. But that is all the more reason to be careful. The IRS and its Security Summit partners today called on tax professionals and taxpayers to use the free, multi-factor authentication feature being offered on tax preparation software products.

Protect yourself and your clients against Identity Theft

Already, nearly two dozen tax practitioner firms have reported data thefts to the IRS this year. Use of the multi-factor authentication feature is a free and easy way to protect clients and practitioners’ offices from data thefts. Tax software providers also offer free multi-factor authentication protections on their Do-It-Yourself products for taxpayers.

“The IRS, state tax agencies and the private-sector tax industry have worked together as the Security Summit to make sure the multi-factor authentication feature is available to practitioners and taxpayers alike,” said Kenneth Corbin, Commissioner of the IRS Wage and Investment division. “The multi-factor authentication feature is simple to set up and easy to use. Using it may just save you from the financial pain and frustration of identity theft.”

Multi-factor authentication means returning users must enter their username/password credentials plus another data point that only they know, such as a security code sent to their mobile phone. For example, thieves may steal passwords but will be unable to access the software accounts without the mobile phones to receive the security codes.

Multi-factor authentication protections are now commonly offered by financial institutions, email providers and social media platforms to protect online accounts. Users should always opt for multi-factor authentication when it is offered but especially with tax software products because of the sensitive data held in the software or online accounts.

The IRS reminded tax professionals to beware of phishing scams that are commonly used by thieves to gain control of their computers. Thieves may claim to be a potential client, a cloud storage provider, a tax software provider or even the IRS in their effort to trick tax professionals to download attachments or open links. These scams often have an urgent message, implying there are issues with the tax professionals’ accounts that need immediate attention.

The IRS also reminds tax professionals that they can track the number of returns filed with their Electronic Filing Identification Number (EFIN) on a weekly basis. This helps ensure EFINS are not being misused. Simply go to e-Services, access the EFIN application and select EFIN status to see a weekly total of returns filed using the EFIN. If there are excessive returns, contact the IRS immediately.

Taxpayers can learn more about identity theft and how to protect themselves at Identity Theft Central on IRS.gov.

Tax professionals can learn more about protecting data, signs of theft or reporting data thefts Identity Theft Information for Tax Professionals. Also, Publication 4557, Safeguarding Taxpayer Data, provides a comprehensive overview of steps to protect computer systems and client data.

IRS Aid For Identity Theft

It is not something you want to think about and when and if it does happen where to turn? Well the IRS has taken on this difficult topic with a spate of resources.

What to do before and after

This month the Internal Revenue Service launched Identity Theft Central, designed to improve online access to information on identity theft and data security protection for taxpayers, tax professionals and businesses.

IRS offers resources and information on how to both prevent identity theft and deal with it after it occurs.

Since 2015, the Security Summit partners have made substantial progress in the fight against tax-related identity theft. But thieves are still constantly looking for ways to steal the identities of individuals, tax professionals and businesses in order to file fraudulent tax returns for refunds.

The partnership has taken a number of steps to help educate and improve protections for taxpayers, tax professionals and businesses. As part of this effort, the IRS has redesigned the information into a new, streamlined page − Identity Theft Central − to help people get information they need on ID theft, scams and schemes.

The page also features videos on key topics that can be used by taxpayers or partner groups. The new page includes a video message from IRS Commissioner Chuck Rettig, warning signs for phishing email scams – a common tactic used for identity theft – and steps for people to protect their computer and phone.

Tax professionals and others may want to bookmark Identity Theft Central and check their specific guidance periodically for updates.

This is part of an ongoing effort by the IRS to share identity theft-related information with the public. The IRS continues to look for ways to raise awareness and improve education and products related to identity theft for taxpayers and the tax professional community.

National Tax Security Awareness Week: Creating strong passwords can protect taxpayers from identity theft

Strong Passwords

With millions of people logging in to websites and online accounts this holiday season, the IRS and the Security Summit partners remind taxpayers that common mistakes can increase their of risk having sensitive financial and tax data stolen by identity thieves.

The Internal Revenue Service, state tax agencies and the nation’s tax industry remind taxpayers that using strong passwords and keeping them secure are critical steps to preventing thieves from stealing identities, money or using the information to file a fraudulent tax return.

“Taking a few simple steps to protect your passwords can help protect your money and your sensitive financial information from identity thieves, which is critically important as tax season approaches” said IRS Commissioner Chuck Rettig. “Protecting your information makes it harder for an identity thief to file a fraudulent tax return in your name.”

Password protection is the focus of Day 3 of National Tax Security Awareness Week. For the fourth year in a row, the IRS, state tax agencies and the nation’s tax industry – working together as the Security Summit – are highlighting the holiday period as a time to remember important safety tips everyone should take to protect their sensitive tax and financial data.

The week continues through Dec. 6 with a series of special educational efforts taking place at more than 25 partner events across the country to raise awareness about protecting taxpayers and tax professionals from identity theft. The week includes special social media efforts on platforms including Twitter and Instagram, including a special Twitter chat on @IRSnews and #TaxSecurity on Thursday.

Strong passwords protect online accounts and digital devices from data theft. But there have been some important changes many people can overlook.

In recent years, cybersecurity experts’ recommendations on what constitutes a strong password has changed. They now suggest that people use word phrases that are easy to remember rather than random letters, characters and numbers that cannot be easily recalled.

For example, experts previously suggested something like “PXro#)30,” but now suggest a longer phrase like “SomethingYouCanRemember@30.” By using a phrase, users don’t have to write down their password and expose it to additional risk. Also, people may be more willing to use strong, longer passwords if it’s a phrase rather than random characters that are harder to remember.

Protecting access to digital devices is so critical that some now feature fingerprint or facial recognition technology, but passwords remain common for many people.

Given the sensitivity of many of these online accounts, people should consider these passwords tips to protect devices or online accounts:

  • Use a minimum of eight characters; longer is better.
  • Use a combination of letters, numbers and symbols in password phrases, i.e., UsePasswordPhrase@30.
  • Avoid personal information or common passwords; use phrases instead.
  • Change default or temporary passwords that come with accounts or devices.
  • Do not reuse or update passwords. For example, changing Bgood!17 to Bgood!18 is not good enough; use unique usernames and passwords for accounts and devices.
  • Do not use email addresses as usernames if that is an option.
  • Store any password list in a secure location, such as a safe or locked file cabinet.
  • Do not disclose passwords to anyone for any reason.
  • When available, a password manager program can help track passwords for numerous accounts.

Whenever it is an option for a password-protected account, users also should opt for a multi-factor authentication process. Many email providers, financial institutions and social media sites now offer customers two-factor authentication protections.

Two-factor authentication helps by adding an extra layer of protection. Often two-factor authentication means the returning user must enter their credentials (username and password) plus another step, such as entering a security code sent via text to a mobile phone. Another example is confirming “yes” to a text to the phone that users are accessing the account on.

The idea behind multi-factor authentication is that a thief may be able to steal usernames and passwords, but it’s highly unlikely they also would have access to the mobile phone to receive a security code or confirmation to actually complete the log-in process.

Remember: the IRS will never ask for passwords. And watch out for phishing emails posing as trusted companies seeking passwords.

The IRS, state tax agencies, the private sector tax industry, including tax professionals, work in partnership as the Security Summit to help protect taxpayers from identity theft and refund fraud. This is the third in a week-long series of tips to raise awareness about identity theft. See IRS.gov/SecuritySummit for details.

If your identity is stolen…..

Alert the authorities and all financial institutions immediately and review your credit report .

Identity theft is on the rise, ignoring identity it can effect your financial health.

Credit Score monitoring can help STOP identity theft.

Identity Theft Can Harm Your Finances

Using your personal data, an identity thief could open new credit accounts or apply for unsecured loans. Identity theft could also damage your credit report—jeopardizing your future applications for credit cards, loans, or even jobs.

7 Steps to Fight Back Against Identity Theft

Place a Fraud Alert on Your Credit Report

Review Your Credit Report

Report Identity Theft to the FTC

Assess the Damage and Report the Fraud

Contact Your Creditors and Financial Institutions

Report the Fraud to the Appropriate State and Federal Agencies

Change Your Passwords

ID theft: Here’s what to look for and what to do when it happens

Tax-related identity theft occurs when a thief uses someone’s stolen Social Security number to file a tax return and claim a fraudulent refund. The victim may be unaware that this has happened until they e-file their return. Even before the victim files their return, the IRS may send the taxpayer a letter saying the agency identified a suspicious return using the stolen SSN. [Read more…]

With the filing deadline close, here’s why taxpayers should e-File

With the filing deadline close, here’s why taxpayers should e-File

A few taxpayers still use the old-school method of filing their tax returns: on paper. For these people, now is the time to consider filing electronically. With the April tax deadline right around the corner, it’s the perfect time to use IRS e-File.

Here are the top six reasons why taxpayers should file electronically in 2019:

It’s accurate and easy. E-File helps taxpayers avoid mistakes, such as a transposed Social Security number. Taxpayers who e-File receive an acknowledgement from the IRS within minutes, telling them their return has been accepted. If a return is rejected, the acknowledgement will detail why the IRS rejected the tax return.

It’s secure.
E-file meets strict security guidelines. It uses modern encryption technology to protect tax returns. The IRS continues to work with states and tax industry leaders to protect tax returns from tax-related identity theft. This effort has helped put strong safeguards in place to make electronic tax filing a safe and secure option.

It’s convenient.
Taxpayers can buy commercial tax software to e-File right from their home computer.  They can also ask their tax preparer to e-file their tax return.

It means faster refunds. When taxpayers e-File and use direct deposit for their refund, they can get their money in less than 21 days in most cases. On the other hand, if they mail a paper tax return to the IRS and request a refund check in the mail, it can take up to six weeks. Also, since e-Filed returns are generally more accurate, there probably won’t be additional delays. They delays can be caused when the IRS finds mistakes that must be fixed before the IRS can send a refund.

It’s often free. Most taxpayers can e-file for free through IRS Free File. Free File is only available on IRS.gov. Some taxpayers may also qualify to have their taxes e-filed for free through IRS volunteer programs. Volunteer Income Tax Assistance offers free tax preparation to people who generally earned $55,000 or less. Tax Counseling for the Elderly generally helps people who are age 60 or older.

It can be used whether a taxpayer is getting a refund or needs to make a payment. Taxpayers who owe taxes can e-File early and set up an automatic payment on any day until the April deadline. They can pay electronically from their bank account with IRS Direct Pay. Taxpayers can visit IRS.gov for information on other payment options.

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