The fourth workweek of January is Tax Identity Theft Awareness Week. The annual campaign is designed to raise awareness about the risks and warning signs of tax-related identity theft.

Tax identity theft is more common than many people realize, and it often affects everyday individuals like you and me. It isn’t just a random hack or a system glitch. In most cases, it’s part of a deliberate fraud scheme in which criminals use stolen personal information to file a fake tax return and claim your refund before you do. 

In 2014, the Federal Trade Commission (FTC) established the week to help make taxpayers aware of these threats that are often hiding in plain sight.

Scammers can obtain your personal data in several ways. This can include data breaches at stores, hospitals or schools; phishing emails or text messages pretending to be from the Internal Revenue Service (IRS) or your bank; mail theft of W-2s or tax documents; or even information you share publicly on social media, such as birthdays, addresses and family names. 

Once criminals have your Social Security number, name and date of birth, they often have enough information to file a fraudulent return in your name.

While these scams can vary, there are a few common warning signs to watch for, including:

Your tax return is rejected because one has already been filed.

You receive an IRS letter about:

A suspicious return,

Unreported income or

An online IRS account you didn’t create.

One of the scariest parts of these schemes is that many people don’t realize they’ve been targeted until something goes wrong. What may seem like a minor inconvenience at first can quickly snowball into long-term problems if not addressed promptly. Victims can face delayed refunds, frozen IRS accounts, damaged credit and increased scrutiny on future tax filings.

Thankfully, there are several steps you can take to protect yourself from these scams:

File early: The earlier you file, the less chance a scammer has to beat you to your refund.

Use an IRS Identity Protection PIN (IP PIN): This six-digit code must be entered with your tax return. Without it, no one can file a return using your Social Security number.

Lock down your personal data: Shred old tax documents, avoid emailing your Social Security number and use strong, unique passwords for financial accounts.

If you believe your identity has been stolen for tax fraud, take action right away:

File Form 14039 (IRS Identity Theft Affidavit).

File a paper tax return if your e-file is rejected.

Report the theft at www.IdentityTheft.gov.

Consider placing a fraud alert or credit freeze on your credit reports.

Keep copies of all IRS correspondence.

Be prepared for a long resolution timeline, though refunds can often be recovered.

Tax identity theft hits people at their most vulnerable and exploits their most personal information. It can also create long-term trust issues with government systems and take months, or even years, to fully resolve. By staying informed and vigilant, we can reduce the impact of these schemes and avoid becoming victims of tax identity theft.

Assemblyman Karl Brabenec (R,C) represents the 98th District, which includes the city of Port Jervis, the towns of Deerpark, Greenville, Mount Hope, Wawayanda, Minisink, Warwick, Tuxedo and portions of the towns of Monroe and Ramapo. For more information, visit www.brabenec.org.