Tips for a fraud free tax season

Since January 2005, more than 105,000,000 people have been affected by the loss or theft of personal information, including millions through losses or errors by the Internal Revenue Service or services specializing in filing taxes. Among the 2006 losses were:

• In January, an unknown number of people were affected when H&R Block exposed customers' social security numbers on the outside of mailing envelopes.

• In May, 330,000 people were notified that their personal information had been lost by the American Institute of Certified Public Accountants in NY.

• In June, nearly 300 people were affected when an IRS computer disappeared.

• In June, 2,200 Oregon taxpayers were affected when electronic files containing personal data may have been compromised by an ex-employee of the Oregon Department of Revenue.

• In November, the IRS reported that 112 of 478 missing department laptops included sensitive personal information for an unknown number of taxpayers.

Todd Davis, CEO of the nation’s leading ID theft prevention company and a Certified Identity Theft Risk Management Specialist, offers these tips in regards to protecting information, especially while preparing and sending taxes. These include:

• Place Fraud Alerts on personal information before filing. Don’t forget to place fraud alerts on your children since adults could be filing tax returns using their social security numbers.

• Don’t fear online reporting. Going through a trusted source such as www.irs.gov, or through a national company (H&R Block, TurboTax, etc.) are easy and smart ways to file.

• Do background checks. If working with another organization for filing, check the local Better Business Bureau for service record and complaints.

• Make sure your computer has updated firewalls and other security measures.

• Once you have completed the forms, shred all work papers and unneeded documents.

• Do not provide personal information to organizations that may email you. The IRS will never email you asking for your social security number or PIN numbers.

• If filing via mail, drop it off inside the post office. Do not leave information inside your mailbox for pickup or drop off after hours at a postage handler.

• If sending a return with a payment via check, do not list your social security number on the check since you have no idea who will be handling it.