Multiple data breaches from outside the tax system means cybercriminals have basic information on millions of Americans, such as names, Social Security numbers and addresses. The steps taken by the IRS since 2015 help protect against fraudulent tax filings that use this basic data.

As a result, identity thieves are looking to steal more detailed financial information to help provide a more realistic tax return to better impersonate legitimate taxpayers. Because they need more personal data, cyberthieves increasingly target tax professionals, human resource departments, businesses and other places that have large amounts of sensitive information. These schemes attempt to get taxpayer W-2 information from employers or large national tax preparation firms.

3 Tops Ways to Keep Your Info to Yourself

FILE EARLY – scammers try to file returns before the actual tax payer does. If you have all the information you need to file a return, do so. Most tax information (W-2 & 1099 forms, etc.) are due to be received from your employer or financial institution by January 31st.

FILE ELECTRONICALLY – using your unique IRS & NYS Pin & security software with firewall and anti-virus protections. Make sure the security software is always turned on and is running the latest version. Encrypt sensitive files, such as tax records, stored on computers. Use strong, unique passwords for each account.

TRUST A PROFESSIONAL – use a tax prep software like TurboTax or a local professional accountant where possible. Both options provide the best possible security in filing tax documents directly with the IRS & NY State.

OUR ADVICE
Being diligent with your personal information, filing your tax return as early as possible and filing electronically using the appropriate software or professional will help you avoid fraud. ** For more information, see www.irs.gov/identitytheft.