The Internal Revenue Service (IRS) wants to help you keep your identity safe from on-line thieves. The IRS has issued a proposal to allow some tax filers to use a truncated taxpayer identification number on certain forms and tax documents. However, there are no plans at this time to allow individuals to use a shortened version of their Social Security numbers when filing individual tax returns.
The IRS initiative is in response to the growing problem of tax-related identity theft, including the filing of false tax returns using stolen identification numbers. There has been a rise in the theft of tax returns using such pilfered information.
The IRS has provided additional recommendations on protecting your taxpayer identification number:
- Guard your personal information.
Identity thieves can get your personal information in many ways. This includes stealing your wallet or purse, posing as someone who needs information about you, looking through your trash, or stealing information you provide to an unsecured website or in an unencrypted email. - Watch out for IRS impersonators.
Be aware that the IRS does not initiate contact with taxpayers by email or social media channels to request personal or financial information or notify people of an audit, refund or investigation. Scammers may also use phone calls, faxes, websites or even in-person contacts. If you’re suspicious that it’s not really the IRS contacting you, don’t respond. - Protect information on your computer.
While preparing your tax return, protect it with a strong password. Once you e-file the return, take it off your hard drive and store it on a CD or flash drive in a safe place, like a lock box or safe. If you use a tax preparer, ask how he or she will protect your information.
You can read more about the IRS proposal for using truncated identification numbers in this article by Accounting Today: http://www.accountingtoday.com/news/IRS-Allow-Truncated-Tax-IDs-Combat-Identity-Theft-65769-1.html?ET=webcpa:e6734:46360a:&st=email
For additional information or helpful ideas on protecting your on-line tax identity, contact the Gray, Gray & Gray Tax Department at (781) 407-0300.