The Update

All You Need to Know About Tax Identity Theft

Tax identity theft is a growing issue that affects thousands of taxpayers every year, especially during tax season. It occurs when someone uses your personal information—most commonly your Social Security number (SSN)—to file a fraudulent tax return and claim a refund in your name. By the time you try to file your own return, the damage may already be done.

How Tax Identity Theft Happens

Scammers obtain personal information in several ways, including phishing emails, fake phone calls, data breaches, or unsecured internet connections. Once they have enough details, they file a tax return early in the season to collect a refund before the legitimate taxpayer does. Victims often don’t realize what happened until their return is rejected or they receive an unexpected notice from the IRS.

Common Warning Signs

There are a few red flags that may indicate tax identity theft:

• Your tax return is rejected because one has already been filed using your SSN
• You receive an IRS notice about a suspicious return you didn’t file
• You get a tax transcript you didn’t request
• The IRS notifies you that your online account was accessed without authorization

What the IRS Will Never Do

Understanding how the IRS communicates can help you avoid scams. The IRS will never:

• Initiate contact by email, text message, or social media
• Call you with threats of arrest or lawsuits
• Ask for personal or financial information via text or email
• Demand payment using gift cards, wire transfers, or prepaid debit cards
• Request your Identity Protection PIN over the phone

How to Protect Yourself

You can reduce your risk by taking a few proactive steps:

• File your tax return as early as possible
• Never share your SSN with unverified sources
• Use a secure internet connection when filing electronically
• Research tax preparers carefully and confirm their credentials
• Send mailed tax returns directly from the post office

What to Do If You’re a Victim

If you believe you’re a victim of tax identity theft, act quickly. Visit IdentityTheft.gov to report the issue to the IRS and the Federal Trade Commission (FTC). You’ll receive a personalized recovery plan and step-by-step guidance. The IRS may also issue you an Identity Protection PIN to help secure future tax filings.

Why Awareness Matters

Tax identity theft can delay refunds, create financial stress, and take months to resolve—but awareness is your strongest defense. Knowing the warning signs and understanding how to protect your personal information can help keep your finances and identity safe.

Staying informed, cautious, and proactive is the best way to protect yourself this tax season and beyond.

RGCU Identity Theft Protection Benefit

Your RGCU Debit Card comes with Personal Identity Theft Protection. If your identity is stolen, you could be redeemed up to $5,000 for the cost of recovery. We hope this never happens to any of our members, but this benefit is available if needed.