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Tax Season
Cyber Fraud Identity Protection IRS PIN personal data safety secure tax filing Tax Fraud Tax Scams Tax Season

Protect Your Tax Return from Fraud: Here's What You Need to Know

 


Tax Season 2025: Protect Yourself from Fraud with an Identity Protection PIN

A new year marks the start of another tax season, bringing with it the usual challenges of navigating the complex US tax code and avoiding scams. One particularly concerning scam involves fraudsters filing a tax return in your name to claim a refund. Many victims only realize they've been targeted when they attempt to file their own return, uncovering a complicated issue that can take weeks or even months to resolve.

The risk of tax-related identity theft is elevated this year due to a series of high-profile data breaches in 2024. Personal information, including Social Security numbers, has become more accessible on the dark web, providing fraudsters with the tools they need to exploit unsuspecting taxpayers. As tax season progresses, this vulnerability becomes a significant concern for individuals and businesses alike.

How the IRS’s Identity Protection PIN Can Help

To combat this type of fraud, the IRS offers a proactive solution: the Identity Protection PIN (IP PIN). This six-digit PIN acts as a layer of authentication to ensure that only your legitimate tax return is accepted. If a return is filed without the correct IP PIN, it will be rejected, preventing unauthorized filings in your name.

Initially, the IP PIN program was limited to victims of identity theft or those flagged by the IRS as high-risk individuals. However, the program has now been expanded to all taxpayers who wish to voluntarily enroll. The process is straightforward and can be completed in three ways:

  • Online: Use the government’s ID.me service to verify your identity. This option typically takes 15–20 minutes.
  • By Mail: Submit a paper application to the IRS.
  • In-Person: Schedule an appointment at an IRS office for identity verification.

Once enrolled, your IP PIN is valid for one year and cannot be reused. Each year, you can opt to receive a new PIN, providing an added layer of security. This feature prevents fraudsters from exploiting a stolen PIN even after its use in a prior tax season.

Best Practices for Taxpayers

For most taxpayers, opting for an annually renewed IP PIN is the ideal choice. This ensures you have updated protection each year without the need to manage multiple PINs simultaneously. If you ever misplace your PIN, you can retrieve it by logging into your IRS account using your ID.me credentials. To streamline this process, consider using a password manager to securely store your account credentials, including a strong, unique password for your government account.

By adopting these best practices, you can reduce the stress of tax season and protect yourself against fraud. For more information, visit the IRS’s FAQ page on the Identity Protection PIN program. This simple yet effective system offers much-needed peace of mind during the often overwhelming task of filing your US tax return.

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Tax Season Vigilance: Guarding Against Fraudulent Schemes

 


When people think about filing taxes, they get stressed out and intimidated. In this respect, they may be more susceptible to deception, including scammers' attempts to obtain valuable personal information from them, claim refunds under their names, and trick them into paying for fraudulent tax services, among others.

It is at the beginning of the tax season, which began on Jan. 29, when the Internal Revenue Service began processing and accepting federal income tax returns for 2023, that scammers will begin to attack us with scams. Tax season is coming up and the IRS is expecting more than 146 million individual returns to be filed by April 15, the due date. 

The Federal Trade Commission's Division of Financial Practices, led by an attorney who is a former employee of the agency, says that scammers use tax time to steal personal and financial information from individuals. 

To accomplish this, they pose as representatives of the Internal Revenue Service (IRS) and make people hand over their Social Security number and bank account information by contacting them over the phone using various high-pressure tactics. 

To maintain the trust of consumers, the IRS will not use aggressive techniques to obtain a taxpayer's personal information. They will initiate contact by letter and not use aggressive tactics to obtain the taxpayer's personal information. There are certain circumstances where the IRS may call users, but in most cases, they will send them mail messages or notices as a prelude to making the call. 

There have been a disturbing number of instances where people have been defrauded through the mail as well. It has been reported that in 2023 a scam in the mail was perpetrated by spoofing the IRS masthead, informing recipients that they had unclaimed refunds. There was a request in the letter for taxpayers to call a number to figure out more details, and also a request to provide sensitive information such as a photograph of the taxpayer's driver's license. 

Besides spoofing IRS caller IDs as well as other sophisticated tricks for fooling consumers, Dwyer says there are other methods for fooling consumers. A scammer in this case has altered the caller ID so that it appears as though the IRS is calling rather than some other unknown number. 

When the caller calls you, Dwyer advises that you let it go to voicemail and then search online to see if the number has already been reported as part of a scam before waiting to answer it. A scammer is also capable of sending emails that masquerade as IRS correspondence, with e-mail addresses, signatures, and logos that appear to be authentic, but are fakes. 

They may ask recipients to enter personal information on fraudulent websites when they click on the links in these emails. If a consumer has not heard back from the government agency about their tax filing or refund, they should generally view any phone calls or emails claiming to come from the IRS as highly suspicious. 

The IRS pays the consumer electronically in the form of a refund when they file a return in their name and provide the IRS with their bank account information, and the scammer then receives the refund by filing a return in the name of the consumer. There is no way they can accomplish this without possessing stolen personal information, including a Social Security number, which they can use to commit this crime. 

By filing your taxes as soon as possible, you can help prevent this outcome from occurring in the future. The consumer would not be made aware of the theft of their refunds until they attempt to file their tax returns after the refund has been stolen. Moreover, it would be a good idea to avoid sharing any personal information with identity thieves which would allow them to file a fake tax return to claim a refund that is not theirs. 

Scammers who ask for sensitive information by posing as people are not restricted to tax season only, so be mindful of their requests throughout the year. Individuals who have fallen victim to identity theft or are aware of a breach in their sensitive data are advised to exercise heightened caution and consider utilizing a credit monitoring service to ascertain if their information has been used for unauthorized account openings. 

Those affected by identity theft can leverage the services offered by the Federal Trade Commission's (FTC) website, IdentityTheft.gov, to formally report the theft and access a comprehensive recovery plan. This plan guides individuals through crucial tasks such as closing compromised accounts, rectifying inaccuracies in credit reports, and reporting the misuse of a Social Security number. 

For taxpayers grappling with the repercussions of a scam affecting their tax returns, seeking assistance from the federal Taxpayer Advocate Service is recommended. This independent organization, affiliated with the Internal Revenue Service (IRS), extends support to taxpayers unable to independently resolve tax-related issues. Advocates from this service are available to provide guidance and assistance in navigating challenges stemming from fraudulent activities.
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