This is the time of year where some virtual criminals try to take money that is not theirs. With everyone needing to have a financial transaction with the IRS and States, there is plenty of money coming and going. With governments trying to make tax filing and paying as easy as possible, these fraudsters view this as an opportune time to attack. As a bonus, if the fraudster is able to defraud the IRS, they will have access to taxpayer personal information and will then be able to have access to personal bank information as well.
What should you as a taxpayer do to protect themselves?
The first step is to develop great cybersecurity for yourself. Never send identifiable information through email, texting, WhatsApp or general social media. Even if the recipient is trustworthy, the process is not secure. These mediums of communication are relatively easy targets for criminals to hack and steal the information and misrepresent you. Also, when you are going to a website, make sure the website you are trying to go to is in fact the website that you are in. Criminals can forge websites using a URL that is almost identical to a legitimate website. As examples, irs.com or irs.org are sites that try to mimic irs.gov.
What about income tax filing protection?
To protect your personal information when filing your income tax returns there are several steps you should take.
If you are a self-preparer and you want to use software, use the software that is reputable. You should be able to google the software’s security. Or you can use an IRS free-file provider. You’ll then know that the software has the highest level of security. Maryland also offers free online filing of their 502 tax return with the highest security.
If you use a preparer, you will want a preparer that protects your information at the highest level. The IRS now requires all tax preparers to have a WISP- Written Information Security Plan. This plan ensures that the preparer has the security in place to help prevent any breaches, and if a breach is attempted, how the preparer and their computer system will respond. If you are considering using a new preparer this year, ask them for a copy of their WISP.
Finally, the IRS is now offering all taxpayers the opportunity to sign up for an Identity Protection PIN. This IP PIN will prevent any return from being e-filed without it. If an attempt to file is made, the return will be rejected. Once requested, the IRS will mail a new PIN each year, requiring the IP PIN to be used in order to e-file.
Taxpayers also have the opportunity to file on paper. However, paper filing takes a lot longer to process, meaning refunds take longer to be issued and received.
Moshe Pelberg, CPA, is a Certified Public Accountant in Maryland who is a contributing columnist who writes on financial matters.
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