Five Things To Know About Identity Theft (Forbes)

With tax season in full swing, identity-theft-related tax fraud has become a hot topic. While taking steps to protect yourself from identity theft is always smart, it's important that you don't get too caught up in the hype. I've received a number of emails from panicked taxpayers who, after watching various news spots on the dangers of identity-theft-related tax fraud, are feeling confused and pressured. Unfortunately, some of the advice making the rounds - while certainly sensational - isn't very practical. Here are five things you need to know about identity theft and tax returns:

  1. Not all data breaches or computer hacks result in identity-theft-related tax fraud.

  2. Filing early doesn't prevent identity theft.

  3. Rushing to file an incomplete return isn't a good strategy.

  4. Not every taxpayer needs an IP PIN.

  5. An IP PIN isn't a one-time fix.

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