This information is provided for general education only and is not affiliated with or endorsed by the IRS.

Stay a Step Ahead: How to Protect Your Identity This Tax Season 

Tax season is a prime window for identity thieves who file fraudulent returns using stolen Social Security numbers (SSNs), often leaving victims to untangle delays, notices and credit headaches. The most effective defense is being proactive: Secure your Internal Revenue Service (IRS) Online Account with strong authentication, guard your SSN closely, monitor your IRS transcript and credit, watch for sophisticated phishing (including AI‑generated messages) and file early so fraudsters can’t beat you to your refund. If you do spot trouble, act within 72 hours by alerting the IRS, filing Form 14039 (Identity Theft Affidavit) and placing fraud alerts with the credit bureaus. You should also monitor your accounts over the following months. These steps dramatically reduce risk and help keep your financial life on track.

Why Tax Season Demands Extra Vigilance

During filing season, criminals exploit fast‑moving refunds, an overwhelmed ecosystem and massive return volume to run a simple but harmful scheme. Using a stolen SSN, they file a false return with fabricated income and credits, direct the refund to an account they control and vanish long before you realize what happened. This is one of the fastest‑growing forms of identity theft, and many victims only discover it when the IRS rejects their legitimate return because “one was already filed.” In recent years, according to the U.S. Department of Justice, billions in refunds have been flagged for possible identity fraud, underscoring how active this threat remains each tax season.

Criminals also know the season’s pressure points. Tax professionals face heavy workloads, which can make it harder to spot red flags. Meanwhile, as filing speeds increase, fast refund issuance can inadvertently benefit fraudsters who move quickly. Add today’s easy access to stolen data — through breaches, phishing or resale on illicit markets — and you have a prime environment for scams. Even advances in AI are helping criminal operations produce convincing documents, messages and voice imitations at scale, raising the bar for what looks legitimate. With those risks in mind, here are some practical moves you can take to strengthen your defenses.

Spot the Early Warning Signs

The sooner you catch suspicious activity, the faster you can shut it down. Several signals commonly precede or accompany tax identity theft. If any of the following happen, investigate immediately:

• IRS notices for returns you didn’t file or multiple notices in one year about activity you don’t recognize.
• A rejected or delayed refund because a return was already submitted under your SSN.
• Income records you don’t recognize, including W‑2s or 1099s from employers you never worked for.
• Unexplained credit score drops or new inquiries/accounts you don’t recognize — tax identity theft often accompanies broader misuse of your personal data.

While any one warning sign may have a benign explanation, together they point strongly to fraud. The key is not to wait until April to check— catching issues in January or February can prevent months of delays and stress.

Build Your Defense: Simple Moves with Outsized Impact

A few targeted actions make it much harder for would-be thieves to gain a foothold. Focus on the accounts and identifiers that matter most, then layer in sensible monitoring.

Lock Down Your IRS Online Account 

Your IRS Online Account is the front door to your tax data; if someone gets in, they can see sensitive information and potentially initiate filings. Use a long, unique password of 16 or more characters, store the password in a password manager and turn on two‑factor authentication so a one‑time code is required on every login. Checking your IRS transcript periodically — especially in January through April — can surface filings or income you don’t recognize. Some users also add IP‑based restrictions, where available, to limit logins to known locations. These small steps significantly reduce exposure.

Treat Your Social Security Number Like a Master Key 

Your SSN unlocks most tax fraud schemes, so minimize how often you share it. Don’t carry the card in your wallet and question any request for your SSN — many organizations simply don’t need it. If you must give it over the phone, make sure you initiated the call to a verified number. It also helps to create a my Social Security account at SSA.gov and review your earnings record for anything unfamiliar. This simple habit can alert you to misuse you might otherwise miss.

Freeze Your Credit if You Can

A free credit freeze with Equifax, Experian, and TransUnion blocks new credit lines unless you lift the freeze — an effective way to stop thieves from opening accounts in your name while you’re occupied with taxes. If a full freeze feels too restrictive, set up a fraud alert so lenders must take extra steps to verify your identity before issuing new credit. Either way, you’re adding speed bumps that deter opportunistic fraud. 

Monitor What Matters When it Matters Most 

During tax season, check your IRS transcript monthly and your credit more frequently. Reviewing them throughout filing season gives you early visibility into any unfamiliar accounts or inquiries. You can run a free credit report on AnnualCreditReport.com; Some people add a paid monitoring service for real‑time alerts or identity theft insurance, but even consistent use of free tools can be highly effective.

Outsmart Modern Phishing and AI‑Driven Scams

Today’s phishing isn’t just misspelled emails. Criminals now generate messages that look and read convincingly like IRS communications, use shortened URLs to hide malicious destinations and even attach realistic‑looking PDFs and forms that can install malware.  If a message uses aggressive, urgent language such as “verify now” or “refund delayed unless you click”, assume it’s a scam.

AI has also lowered the cost of producing deepfakes and convincing voice clones.  If something feels off — odd pauses, overly scripted phrasing or an unusual request to share sensitive data — slow down and verify independently by contacting the organization through a phone number you find yourself. Your skepticism is a powerful defense.

The most important rule when it comes to preventing tax-related identity theft is: the IRS will not initiate contact by email or text about a tax issue, request your personal details through a link or demand immediate payment via wire or gift card. Navigate directly to IRS.gov in your browser or call the IRS yourself using a published number. When in doubt, forward suspicious emails to the IRS phishing mailbox and report fraudulent texts through the appropriate channels. These reports help law enforcement track and disrupt active campaigns. 

File Early and Use Trusted Providers

One of the simplest ways to beat identity thieves is also one of the most overlooked: file as early as you can. Once your legitimate return is accepted, a fraudulent return using your SSN should be rejected. For those with complex finances or a history of identity theft, filing in the first weeks of the season adds crucial protection and helps avoid refund delays. Whether you file on your own or work with a professional, opt for reputable software with strong encryption and two‑factor authentication. If you hire a preparer, verify their Preparer Tax Identification Number (PTIN), review your return before signing and avoid providers who promise unusually large refunds or calculate fees as a percentage of your refund. These practices keep your sensitive documents in trustworthy hands.

Unfortunately, some tax fraud originates with unscrupulous preparers. Warning signs include refusing to share a full copy of your return, pressuring you into deductions you can’t document or filing without your signature. If something doesn’t feel right, step away and report concerns to the IRS Criminal Investigation team. Your signature — and your comfort — should be required before anything gets filed.

If You’re Targeted: The First 72 Hours

If you suspect someone filed in your name or receive an IRS notice about a return you didn’t submit, move quickly. A prompt response limits the damage and speeds resolution.

• Call the IRS and report the fraud. Ask to be routed to support specifically for identity theft; have your SSN and driver’s license number handy.
• Submit Form 14039. This formally alerts the IRS of suspected identity theft, flags your SSN and initiates the IRS investigation. 
• Place a fraud alert with any one of the three credit bureaus (they will alert the others) and consider a credit freeze if you haven’t already.
• File a police report and keep the report number — some agencies allow online filing, and the documentation can help with downstream disputes.

After those initial steps, plan to monitor your accounts closely for three or more years: review your credit monthly, check your IRS transcript during filing season and watch for new accounts or unusual notices. Recovery timelines vary, but consistent follow‑up is what brings the situation fully under control.

Who Faces Elevated Risk and How to Adapt

Some people are targeted more often because their profiles or circumstances make fraud easier or more lucrative. Recognizing whether you’re at an increased risk of fraud can help you decide where to focus your protection efforts.

Seniors and Retirees 

Fraudsters often target older adults, who may be more trusting of official‑looking communications or less familiar with emerging digital threats. Adding a trusted family member as a second set of eyes on accounts, enabling two‑factor authentication and proactively freezing credit can head off problems before they start.

Self‑employed Individuals 

More complex returns create more surface area for fraud, and criminals know it. Prioritize filing electronically and early, keep meticulous income records and verify any unexpected 1099s immediately. The added documentation also makes it easier to resolve disputes quickly if something goes wrong.

Recent Fraud Victims 

If you’ve been targeted before, your information may circulate widely on illicit markets. Plan to file in the earliest window next season, keep your credit frozen by default and use a recurring reminder to review your IRS transcript monthly during filing months. The goal is to detect and block repeat attempts before they reach your return.

Households with Complex Financial Pictures 

Multiple income sources, rental properties and investments may increase both your appeal to criminals and the number of documents in circulation. Centralize your sensitive documents in a secure, encrypted environment so fewer copies of your SSN and forms are scattered across email or unprotected storage.

A Quick, High‑Impact Checklist

When time is tight, these actions give you the most protection per minute invested:

• Create or log in to your IRS Online Account, enable two‑factor authentication and set a reminder to review your transcript monthly from January through April.
• Protect your SSN. Limit who you share it with, don’t carry your physical card and verify any request that seems out of place.
• Visit AnnualCreditReport.com for regular credit checks and add a fraud alert (or freeze) during tax season.
• File early using reputable software or a verified preparer with a valid PTIN. Make sure to review every page before signing.
• Treat unsolicited IRS emails or texts as suspicious. Go directly to IRS.gov or call a published number to verify and Report any phishing attempts.

The Bottom Line: Proactive Beats Reactive 

Tax identity theft is both costly and disruptive — but it’s also highly preventable. A few simple habits provide protection and peace of mind: secure the accounts that matter, keep your SSN on a strict need‑to‑know basis, watch your IRS transcript and credit reports, approach digital messages with healthy skepticism and file early. If something does slip through, quick action with the IRS and credit bureaus helps contain the issue and move you toward resolution. Most importantly, don’t wait until April to think about security; the quiet weeks before and after filing are the best time to set up your defenses for the year ahead.

At Bask Bank^®, we’re here to help you protect and grow what you’ve worked hard to earn. If you’re looking for secure, rewarding ways to save — backed by a straightforward, digital‑first experience — explore how a Bask Interest Savings Account can support your goals while you stay confidently in control of your personal information. When your everyday protections are in place, you can focus on building momentum toward the future you want.