How to Protect Your Tax Information from Leaks and Hacks

Protecting Your Tax Information: How to Keep It Safe

Tax information is some of the most private and personal data you have. It includes your income, Social Security number, and even details about your family. But what happens when this information falls into the wrong hands?

Recently, a former IRS contractor leaked the private tax details of over 405,000 people, including former President Donald Trump. This has made many people worry about how safe their tax information really is.

The good news? You can take steps to protect your tax data from leaks, hacks, and scams. In this article, we’ll explain why tax security matters and give you simple ways to keep your information safe.

Why Is Tax Information So Important?

Your tax information holds a lot of sensitive details, including:

• Your Social Security number (SSN) – This number is the key to your identity. If someone steals it, they can open credit cards, take out loans, or even file fake tax returns in your name.
• Your income and job details – This information tells scammers how much money you make, which can make you a bigger target.
• Your address and bank details – If a criminal gets this, they can try to steal from your bank account or send fake tax notices to trick you into paying them.

Because tax data is so valuable, hackers, scammers, and even insiders like the recent IRS contractor might try to get their hands on it.

How Did the IRS Data Leak Happen?

The IRS has strict rules to protect taxpayer information, but human mistakes and bad actors can still cause leaks. In this case, a former IRS contractor stole the private tax records of hundreds of thousands of people over many years. The IRS is now working to notify the affected taxpayers and improve its security measures.

This case shows that even the government’s systems can be at risk, making it even more important for individuals to take steps to protect themselves.

5 Easy Ways to Protect Your Tax Information

Even though some data breaches are out of your control, you can still do a lot to keep your tax information safe. Here’s how:

1. Keep Your Social Security Number Private

• Your SSN is one of the most important pieces of personal information. Only share it when absolutely necessary, and never send it over email or text.
• If a company asks for your SSN, ask them why they need it and how they will protect it.

2. File Your Taxes Early

• Scammers often try to file fake tax returns using stolen identities. If you file early, you beat them to it and lower your risk.
• The IRS usually starts accepting tax returns in late January—don’t wait until April!

3. Watch Out for Tax Scams

• Scammers often pretend to be the IRS to trick people into giving away personal information.
• The IRS will never:
  • Call you and demand immediate payment
  • Threaten to have you arrested
  • Ask for your personal details over email or text
• If you get a suspicious message claiming to be from the IRS, ignore it and report it at IRS.gov.

4. Use a Secure Tax Preparer

• If you hire someone to do your taxes, make sure they are trustworthy. Look for a licensed tax professional or CPA with good reviews.
• The IRS has a directory of verified tax preparers. You can find it at irs.treasury.gov/rpo/rpo.jsf.

5. Protect Your Online Accounts

• Many people file their taxes online, which means strong cybersecurity is a must.
• Tips for better online security:
  • Use strong passwords (at least 12 characters with numbers and symbols).
  • Enable two-factor authentication on tax and banking accounts.
  • Avoid using public Wi-Fi when handling tax documents.

What Is the IRS Doing to Keep Your Information Safe?

After the recent data leak, the IRS is making changes to improve security. Some of the steps they are taking include:

• Stricter rules on who can access taxpayer information.
• Stronger monitoring to catch unauthorized access.
• Faster notifications for taxpayers affected by breaches.

While the IRS is working to prevent future leaks, it’s still important for you to take control of your own data security.

What Should You Do If Your Tax Data Is Stolen?

If you think your tax information has been compromised, take action right away:

1. Report identity theft to the IRS at IdentityTheft.gov.
2. Freeze your credit to prevent criminals from opening accounts in your name.
3. Check your IRS records by getting a transcript at IRS.gov.
4. Monitor your credit reports for any unusual activity.

The faster you act, the better you can protect yourself from fraud.