Identity theft can happen to anyone, at any time, and despite protections you have, it could drastically affect your finances. Identity theft can not only affect you bank account or credit card, it can also affect your taxes and possible refunds you could receive. If someone gets ahold of your Social Security number or even your Employer Identification Number, they could use that to file a tax return or obtain a fraudulent refund. Most people don’t even find out they are victims of identity theft until they submit their tax return and the IRS tells them someone has already filed using that Social Security number. 
The IRS works to stop identity theft from happening but you can help protect yourself. The IRS has provided these simple 8 tips that could help you stop identity theft before it happens.

1. Taxes. Security. Together. 
Taxes. Security. Together. is an awareness campaign the IRS launched in 2015 to inform people about the ways you can protect their personal, tax, and financial data. Some ways the IRS suggests protecting your identity is to use secure software with firewall protection, have strong passwords, and keep important documents in an encrypted file. You can learn more about the campaign and the tips they have here.
2. Protect Personal and Financial Records.
You should never carry your Social Security card in your wallet or purse. Keep it at home in a safe place that you will remember. You should also be careful who you give your number out too as well. You should only provide your Social Security number if it’s necessary. It’s important to protect your personal information your store at home by protecting your personal computers with anti-spam and anti-virus software. Also, routinely change your passwords for online accounts. To learn more about protecting your identity, click here.

3. Don’t Fall for Scams. 
Criminals often try to impersonate banks, credit card companies and even the IRS hoping to steal your personal data. It’s good to learn how to recognize and avoid those fake calls. You need to know the IRS will never call a taxpayer and threaten a lawsuit, arrest or demand immediate payment. If someone says they are from the IRS and they threaten you, it’s best to hang up and report the call. To learn more about what to watch out for and how to identify a fake call, click here.
4. Report Tax-Related ID Theft.
If you find out someone has already filed a tax return using your Social Security number, you should: 
• File a tax return by paper and pay any taxes owed.
• File an IRS Form 14039, Identity Theft Affidavit. Print the form and mail or fax it according to the instructions. Include it with the paper tax return and/or attach a police report describing the theft if available.
• File a report with the Federal Trade Commission using the FTC Complaint Assistant.
• Contact Social Security Administration www.ssa.gov and type in “identity theft” in the search box.
• Contact financial institutions to report the alleged identity theft. 
• Contact one of the three credit bureaus so they can place a fraud alert or credit freeze on the affected account.
• Check with the applicable state tax agency to see if there are additional steps to take at the state level.

5. IRS Letters. 
If the IRS identifies a suspicious tax return with a taxpayer’s stolen SSN, that taxpayer may receive a letter asking them to verify their identity by calling a special number or visiting an IRS Taxpayer Assistance Center. If your identity is stolen, look for the letter, if you don’t receive one, contact the IRS. 
6. IP PIN.
If you are a confirmed Identity theft victim, the IRS may issue you an IP PIN. The IP PIN is a unique six-digit number that the taxpayer uses to e-file their tax return. Each year, you will receive an IRS letter with a new IP PIN.
7. Report Suspicious Activity. 
You can help you and others avoid identity theft by reporting suspicious activity. If you suspect or know of an individual or business that is committing tax fraud, you can visit IRS website and look up the different ways to report tax fraud.
8. Service Options. 
If you still have questions, you can find tons of information about tax-related identity theft online. The IRS has a special section on their website devoted to identity theft and information for victims to obtain assistance.