Identity Theft Refund Scam

Fraudsters are stealing W-2s and other income information to file fraudulent returns, claiming to be the victim. Fraudsters that file illegitimate tax returns often choose a prepaid card for the refund because it is as good as cash and cannot be traced or recovered.

How to protect yourself from tax scams:

Shred any paperwork not needed for tax preparation. Checks from a credit card company offering low annual percentage rates for balance transfers and other pre-approved credit offers should be shredded upon receipt if you do not plan to use them.

Go digital. Tax returns can also be filed digitally on secure servers, and copies of the completed forms downloaded directly to a personal computer.

Be suspicious of phone calls or emails claiming to be from the IRS. The IRS does not initiate contact with taxpayers by email, text message. or social media to request personal or financial information.

Do not put your tax return in an outgoing mail bin. When filing taxes by paper, take them directly to the post office and put them right into a postal worker’s hands. Tax returns are obvious and can easily be snatched.

What to do if you are targeted:

Members who suspect they are victims of identity fraud should file a police report with local law enforcement. They should then call the IRS Identity Theft department at 1-800-908-4490 with a copy of the police report, a completed IRS affidavit Form 14039, and state-issued identification. You will find more information in the Taxpayer Guide to Identity Theft on the IRS website.

Remember to stay alert to scams that use the IRS as a lure. Tax scams can happen any time of year, not just at tax time. For more information, visit https://www.irs.gov/uac/tax-scams-consumer-alerts.