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How do you Protect Yourself from Tax-Related Identity Theft?

Picture of Heather Palermo Heather Palermo · August 12, 2014

small business accounting tax strategy

A recently-released survey by taxAudit.com of 2,000 Americans on the subject of tax scams noted that nearly 80 percent of Americans feel vulnerable to a tax scam or tax related identity theft. Certainly, you can be sure that James Hamlin & Co. is vigilant in keeping your identity safe. Knowing you have a trustworthy tax preparer you can count on, will provide you with a peace of mind.

Here are a few more things you can do to help ease your mind and keep your identity secure:

Place tax documents in a secure location, such as a safe or a locking file cabinet, and store them there until needed to prepare tax forms. Do not leave them in a car.
Do not follow links in emails or text messages to the IRS site. Always type “irs.gov” directly into a browser to avoid vicious links. Report fraudulent IRS emails, texts or phone calls to phishing@irs.gov.
If someone calls you claiming to be from the IRS or another tax authority and asks for money, hang up right away.
Similarly, if someone calls you claiming to be from the IRS or another tax authority and needs to “verify” some information – like a PIN number or bank account number, hang up immediately.
If a person e-mails you and offers assistance in helping you receive your tax refund, that person is a fraud. The IRS does not contact taxpayers via e-mail.

If you do fall victim to a tax scam, seek guidance from the many resources available at IRS.gov.

Your Payroll Department (YPD) is part of the Kaizen CPAs family. YPD specializes in payroll and HR compliance for small businesses, providing the hands-on support to get your people paid and stay compliant without having to become an expert yourself.

The information in this article is provided for general educational purposes and reflects conditions as of the publication date. It does not constitute legal, tax, or compliance advice. For guidance specific to your business, consult a qualified professional.