How to protect yourself from fraud this tax season

 

Tax season is peak activity for identity theft, refund fraud, and phishing campaigns. The threat landscape typically includes social engineering, credential harvesting, business email compromise, and fraudulent refund filings. Below is a structured, practical defense framework.

1. Control the Entry Points (Prevent Identity Theft)

File Early

Submitting your return early reduces the window for a criminal to file fraudulently in your name.

Use an IP PIN (U.S.)

Enroll in the Internal Revenue Service Identity Protection PIN (IP PIN) program.
An IP PIN is a 6-digit code required to file your return and prevents fraudulent submissions under your SSN.

Protect Your SSN

• Never email your SSN or full tax documents unencrypted.

• Do not carry your Social Security card unnecessarily.

• Shred prior-year returns before disposal.

2. Recognize and Block Phishing & Impersonation

Tax scams are primarily phishing-based.

The IRS Will NOT:

• Call demanding immediate payment via gift cards or wire transfer.

• Threatened arrest over the phone.

• Initiate contact via text or social media.

• Request personal data via unsolicited email.

Official IRS information is published only through:

• Internal Revenue Service website (irs.gov)

• Official mailed notices

If unsure, independently navigate to irs.gov — do not click links.

3. Secure Your Digital Infrastructure

Strengthen Account Security

• Use a password manager.

• Enable MFA (multi-factor authentication) on:

  • Email accounts

  • Tax software

  • Financial institutions

  • IRS online account

Secure Wi-Fi

Avoid filing on public Wi-Fi. If unavoidable, use a reputable VPN.

Keep Systems Updated

Patch your OS, browser, and antivirus software before filing.

4. Vet Tax Preparers Carefully

Tax preparer fraud is common.

When hiring a preparer:

• Confirm they have a valid PTIN (Preparer Tax Identification Number).

• Check their standing via the Internal Revenue Service directory.

• Avoid preparers who:

  • Base fees on refund size

  • Refuse to sign the return

  • Ask you to sign a blank return

Prefer credentialed professionals:

• CPA (Certified Public Accountant)

• Enrolled Agent (EA)

• Tax Attorney

5. Monitor Financial and Tax Activity

Create an IRS Online Account

Set up your account directly at:

• Internal Revenue Service

This allows you to:

• Review transcripts

• Confirm filings

• Monitor for suspicious activity

Watch for Red Flags

• IRS rejection stating a return was already filed

• Refund issued that you didn’t request

• Unexpected IRS mail

• Notices of wages from unknown employers

Report suspected tax identity theft immediately using IRS Form 14039.

6. Protect Refund Payments

Choose direct deposit into your own verified bank account.

Avoid:

• Third-party deposit arrangements

• Splitting refunds across unfamiliar accounts

7. Business Owners: Additional Controls

If you operate a business, you face elevated risk:

• Protect your EIN as carefully as your SSN.

• Implement dual authorization for wire transfers.

• Train staff on W-2 and 1099 phishing schemes.

• Use encrypted document portals for client exchanges.

8. Credit Monitoring & Freeze (Optional but Strong)

Consider placing a credit freeze with:

• Equifax

• Experian

• TransUnion

A freeze prevents criminals from opening new accounts in your name.

9. If You Suspect Fraud

Immediately:

1. Contact the Internal Revenue Service.

2. File an identity theft report at Federal Trade Commission (IdentityTheft.gov).

3. Place a fraud alert with one of the three credit bureaus.

4. Notify your financial institutions.

Risk Vector	Control
Refund fraud	File early + IP PIN
Phishing	Verify independently + MFA
Preparer fraud	Credentialed professionals only
Identity theft	Credit freeze + monitoring
Business fraud	Internal controls + staff training