Alert: Privacy Tips for Tax Season

You may be resigned to giving the government your money this tax season, but watch out for fraudsters looking for a piece of the action. Your tax forms contain sensitive information, including your Social Security Number.

This tax season offers consumers a number of methods for completing their returns. Taxpayers have a choice of filing by mail or electronically. Consumers may use personal software, professional services, or old-fashioned pencil and paper. Either way you can bet there is a fraudster ready with a scam. The following tips can help protect your privacy:

• More than 50% of people will file their returns over the Internet, according to the IRS. Before using your computer to transmit your return, check your computer for spyware. The Federal Trade Commission offers information and resources for keeping your computer secure available at: http://onguardonline.gov/index.html

• If filing by postal mail, send the mail from a secure location, preferably before the last scheduled pickup time. Never leave mail in your home mailbox for pickup by your letter carrier.

• Pay attention to missing or lost W-2 or 1099 forms. These tax forms contain your Social Security Number. If you are not using a locked mailbox or P.O. Box, a missing form could be a warning that you are at risk of identity theft.

• If you use professional tax services, check out the privacy policy and security practices first. If the professional tax company maintains a website that collects personally identifiable information from California consumers, the law requires the company to post a conspicuous privacy policy on its website stating what information is collected and with whom it is shared, and to comply with such policy

• When throwing out old records that are no longer needed for tax filing (after the IRS record retention period expires), be sure to shred anything containing personal info. Home shredders can be purchased in many office supply stores. We recommend cross-cut shredders.

Not only should you be smart about how you file your return, you should also be aware of refund scams. The IRS has warned consumers about fraudulent emails requesting personal information to process refunds. The IRS cautions taxpayers that it does not send unsolicited email asking for personal information. For more on this scam see the PRC alert available at: www.privacyrights.org/newsletter/051218.htm#3

For more information on avoiding Tax scams, see the IRS listing of its ìDirty Dozenî scams available at:
www.irs.gov/newsroom/article/0,,id=136337,00.html

The IRS also offers specific tips for identity theft victims available at:
www.irs.gov/individuals/article/0,,id=136324,00.html