Tax Fraud Season: 6 Ways To Protect Yourself

TROY, MI — It’s tax season, and that often translates to fraud season. Troy police say they have taken “many reports” from residents who have received tax-related phone scams and tax-related identity fraud.

The Internal Revenue Service will never contact taxpayers by phone, the police department said, and anyone who receives a call should never provide personal information in response to such a call. Instead, report the incident to the Treasury Inspector General for Tax Administration at (800) 366-4484.

The police department also gets reports about fraudulent tax returns. The best way to prevent this is to guard your Social Security number as if your life — and certainly your financial security — depends on it.

Here are six tips to protect yourself from tax fraud:

1. Protect your Records. Do not carry your Social Security card or other documents with your Social Security number on them. Only provide your SSN if it’s necessary and you know the person requesting it. Protect your personal information at home and protect your computers with anti-spam and anti-virus software. Routinely change passwords for Internet accounts.

2. Don’t Fall for Scams. The IRS will not call you to demand immediate payment, nor will it call about taxes owed without first mailing you a bill. Beware of threatening phone calls from someone claiming to be from the IRS. If you have no reason to believe you owe taxes, report the incident to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484.

3. Report ID Theft to Law Enforcement. If your Social Security number was compromised and you think you may be the victim of tax-related ID theft, file a police report. You can also file a report with the Federal Trade Commission using the FTC Complaint Assistant. It’s also important to contact one of the three credit bureaus so they can place a freeze on your account.

4. Complete an IRS Form 14039 Identity Theft Affidavit. Once you’ve filed a police report, file an IRS Form 14039 Identity Theft Affidavit. Continue to pay your taxes and file your tax return, even if you must do so by paper.

5. Data Breaches. If you learn about a data breach that may have compromised your personal information, keep in mind not every data breach results in identity theft. Further, not every identity theft case involves taxes. Make sure you know what kind of information has been stolen so you can take the appropriate steps before contacting the IRS.

6. Report Suspicious Activity. If you suspect or know of an individual or business that is committing tax fraud, you can visit IRS.gov and follow the chart on How to Report Suspected Tax Fraud Activity.

The Troy Police Department Community Services Section is available to speak to organizations, groups or employers, organizations, groups or employers in the city about how to avoid being a scam victim. To arrange a presentation, call (248) 619-7263.

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