In recognition of Tax Identity Theft Awareness Week, Attorney General Chris Carr, Commissioner of the Department of Revenue Lynne Riley and the Better Business Bureau want consumers to be on alert for tax-related scams as the season approaches.

“This week, we are joining the Georgia Department of Revenue and the Better Business Bureau to ensure that all Georgians have the information they need as we head into tax season,” said Attorney General Chris Carr. “The best way to avoid tax identity theft is to file your taxes as early as possible before a scammer has the chance to use your Social Security number to file a fraudulent return. We hope all Georgians will heed this advice and better protect themselves from falling victim to tax identity theft this season.”

"Combatting tax identity theft and the resulting tax fraud is especially important considering the amount of personal information that has been compromised over the past few years with several large-scale data breaches," said DOR Commissioner Lynne Riley. “Filing an error-free return early in the tax season greatly assists the Department in validating the return is from a legitimate taxpayer and in issuing a refund to the taxpayer in a timely manner.”

Here’s what consumers should be aware of:

Tax Identity Theft

Tax identity theft occurs when a fraudster uses your Social Security number to file a tax return in your name and collect your refund. It also occurs when someone uses your Social Security number to get a job. Typically, consumers don’t realize they have been victims of tax identity theft until they get a written notice from the IRS saying that more than one tax return was filed using your Social Security number, or you were paid by an employer you don't know.

As added security, Georgia consumers can now get an Identity Protection PIN (IP PIN) from the IRS before they file their returns. This is a six-digit number, which, in addition to your Social Security number, verifies your identity. It is important to note that you cannot opt-out once you get an IP PIN. Once you apply for it, you must provide the IP Pin every time you file your federal tax returns – this year and in all future years. The IRS will provide your IP PIN online and then send you a new IP PIN each December by postal mail. Visit www.irs.gov/individuals/get-an-identity-protection-pin for more information about the program.

If you are the victim of tax identity theft, contact the IRS at 1-800-908-4490. You should also file a complaint with the FTC at www.ftc.gov/complaint or by calling 1-877-FTC-HELP.

In an effort to combat tax identity fraud at the State level and to assist in protecting taxpayer identities, the DOR encourages all Georgia taxpayers to create an account with the Georgia Tax Center and to sign up for alerts to be notified when a return has been received with their Social Security number.

The DOR also has been working with the IRS, the tax industry and other state revenue departments as part of the Security Summit initiative to continue strengthening processing systems to protect taxpayers from identity theft and refund fraud. The DOR and Summit partners continue to improve these safeguards to further protect taxpayers filing in 2018.

IRS Impersonation Scams

In this type of scam, a fraudster contacts consumers by phone, claiming to be an IRS agent and insisting that the consumer owes the IRS money. The caller asks the consumer to pay by wiring money or loading money onto a pre-paid debit card and often threatens arrest or legal action if the consumer does not comply. Consumers can easily be convinced that these calls are real as the scammer may know a consumer’s full or partial Social Security number or even use spoofing software that causes the IRS name and/or number to show up in your caller ID. 

Here is what you need to know to avoid this scam:

• The IRS will never call a consumer about unpaid taxes or penalties – the agency typically contacts consumers by letter via the U.S. Mail.

• The IRS won’t demand a specific form of payment and won’t leave a message threatening to sue you, arrest you or deport you if you don’t pay right away.

• If you get a call purporting to be from the IRS, never send money. Instead, hang up and either a) report the scam to the FTC and to the Treasury Inspector General for Tax Administration at tigta.gov or by calling 1-800-366-4484; or b) If you know you owe taxes or you think you might owe taxes, call the IRS at 1-800-829-1040. The IRS employees at that line can help you with a payment issue – if there really is such an issue. Additionally, report the scam to BBB’s Scam Tracker. This allows the Better Business Bureau to provide the information to legal and government agencies.

• If you get an email that claims to be from the IRS, do not reply or click on any links. Instead, forward it to [email protected].

Refund Advances

Some tax preparers offer Refund Advances, which are essentially short-term loans in the amount of your expected tax return less the tax preparation cost. The upside of these loans is that you can get the money right away. However, you should consider whether receiving your refund a couple of weeks sooner is worth the cost of the tax preparation service. 

An important thing to note is that many taxpayers are eligible for free tax preparation and e-filing through the IRS’ Free File program or Volunteer Income Tax Assistance. 

The IRS has partnerships with tax preparers and software companies that offer free online preparation and e-filing of your tax returns to individuals and families with adjusted gross incomes of $66,000 or less. To learn more, visit www.irs.gov/uac/Free-File:-Do-Your-Federal-Taxes-for-Free.  

If your adjusted gross income exceeds $66,000, you can use free fillable forms via the IRS website (for federal return only); however, you need to know how to do your taxes yourself and have access to your 2016 tax return. 

The Volunteer Income Tax Assistance program offers free basic income tax preparation to those earning $54,000 or less, people with disabilities, the elderly and those with limited English-speaking ability.  The Tax Counseling for the Elderly program offers free tax help for all taxpayers, particularly those who are aged 60 years or more. They specialize in questions about retirement-related issues unique to seniors. To find a VITA or TCE site in your area, go to irs.treasury.gov/freetaxprep.

Both the DOR and the IRS issue most refunds in 21 days or less from the time the tax return is received.