AARP Scam Alert: Scammers steal tax refunds

Another tax season is here and that means another round of tax scams, including tax identity theft, are sure to follow.

Tax identity theft happens when someone uses your Social Security number to file a tax return and claim a fraudulent tax refund.

These phony returns are usually e-filed early in the tax season because e-filed returns get faster refunds. A scammer hopes to get a refund check or direct deposit to an account they control before a taxpayer files a legitimate return.

But you won’t know something is wrong until you file your tax return. Here are some of the warning signs: your e-filed return won’t go through; you receive a notice from the IRS that more than one tax return was filed using your Social Security number; you have an unexpected balance due, refund offset or collection action taken against you; IRS records indicate you received more wages than you actually earned; or state or federal benefits are being reduced or canceled because the agency received information reporting an income change.

To avoid tax identity theft, file your tax return as soon as possible so you can claim your refund before a scammer does.

Protect your personal information. Don’t carry your Social Security number or original Medicare card in your wallet. Don’t provide personal information, like your Social Security number or date of birth, to someone who calls you. Any unsolicited email or phone call asking for personal information is likely from a scammer.

If you are a victim of tax identity theft, the onus is on you to get things sorted out. If you suspect tax-related identity theft, call the IRS at 800-908-4490.

For information about other scams, sign up for the Fraud Watch Network at http://www.aarp.org/fraudwatchnetwork. You’ll receive free email alerts with tips and resources to help you spot and avoid identity theft and fraud.