Overview
Most people think of identity theft as stolen bank account or credit card information.
When it comes to tax fraud, identity thieves may use a taxpayer's Social Security number to get a job or file a fraudulent income tax return to get a refund.
The affected taxpayer will be alerted when he or she receives a bill or notice from the Massachusetts Department of Revenue (DOR). Often, a victim of tax identity theft never lived or worked in Massachusetts.
If you believe you're a victim of tax identity theft, contact DOR at (617) 887-6350.
Note: To safeguard your privacy, do not send confidential taxpayer information (for example, your Social Security number(s) or tax liability amounts). If you choose to disregard this warning, please be aware that the DOR is not responsible if confidential information that you sent by email is accessed by third parties.
Your Social Security Number
Under Massachusetts law, DOR has the right to ask an individual to provide his or her Social Security number on a Massachusetts tax return.
DOR uses these numbers for:
- Taxpayer identification
- Forms processing
- Tax refund processing.
Although tax return information is generally confidential, DOR may legally disclose return information to:
- Other taxing authorities
- Those authorized by law.
Learn more about tax information disclosure and confidentiality:
Protect Your Personal Information
Identity thieves have many ways of stealing your personal information. To decrease your risk, you should:
- Order a free copy of your credit report and
- Check it for accuracy each year.
Keep personal information in a secure place in your home, including:
- Social Security card
- Birth certificates and
- Anything else you may carry in a purse or wallet.
Review all credit card and bank statements each month for any:
- Unusual activity or
- Unauthorized charges.
Unless you know for certain who you’re dealing with, don’t provide personal information:
- Over the phone
- Through the mail or
- Online.
Fake Tax Authorities (Text, Email, Phone Scams)
Malicious actors may pose as tax authority officials to intimidate or threaten you into believing you owe taxes. They might also pretend you have an unclaimed refund. These are often social engineering tactics to steal your personal or financial information.
Keep in mind:
- DOR does not send text messages, emails, or make calls about unclaimed tax refunds or taxes owed.
- Scammers often create a sense of urgency or use links that appear to be official website addresses.
- Scammers will send text messages claiming to be from DOR that request payment or sensitive information, such as credit card numbers.
Protect yourself:
- If you receive a text message or email urging immediate action or asking you to click a link, do not respond or click it.
- If you receive a suspicious phone call, hang up.
- See our Phishing Awareness guide to learn about email scams.
- For online transactions with DOR, always use the official DOR website.
Choosing a Tax Preparer
Because tax preparers handle your personal information, choose someone you trust. To keep your data safe, your preparer should use enhanced security, such as encrypted or secure file-sharing portals, when sending documents online.
According to the IRS, taxpayers should always avoid paid preparers who:
- Claim they can obtain larger refunds than other preparers
- Guarantee results or
- Base fees on the percentage of the refund amount.
Although DOR cannot recommend a preparer, the following may provide guidance when you’re choosing a tax preparer:
Sole Proprietorships
If you’re the sole proprietor of a business, the IRS advises you to:
- Keep your Social Security number (SSN) private and
- Use an Employer Identification Number (EIN) instead of your SSN.
Visit the IRS to apply for an EIN.
IRS Guidelines
IRS provides guidance on how you can protect yourself from tax fraud.
According to the IRS, taxpayers should always avoid paid preparers who:
- Claim they can obtain larger refunds than other preparers
- Guarantee results or
- Base fees on the percentage of the refund amount.
To stop someone from filing a fake federal tax return with your Social Security number, you can proactively request an identity protection PIN from the IRS.
If you believe you're a victim of tax identity theft:
- Report Fraud to the IRS
- Immediately report to the FTC (Federal Trade Commission) at IdentityTheft.gov.
- Change passwords for all online financial accounts.
- File a local Police Report.
- Contact Credit Bureaus such as Equifax, Experian, and TransUnion, and place a Credit Freeze and Fraud Alert.
Fraud Protection and Reporting
Tax refund fraud remains a concern, especially with ongoing data breaches. To better protect your tax information, you can opt in to our Fraud Protection Program by calling DOR at (617) 887-6367 or sending an e-message through MassTaxConnect.
When you opt in to our Fraud Protection program, anytime a tax return is filed using your Social Security number, you will be asked to confirm your identity before a refund is issued. The Department of Revenue will mail you a letter, providing a PIN number for return verification. You will then need to go online to MassTaxConnect and provide your personal information along with the PIN. Once verified, your return is processed, and any associated refund is issued.
To verify that it was you:
- Go to the MassTaxConnect homepage.
- In the Individuals section, select the Respond to Request for Return Verification hyperlink.
- Provide all required information so DOR can continue processing your return.
Please note that you cannot opt in after a return has already been filed for the tax year. Also, once you opt in to the Fraud Protection program, you will remain enrolled for subsequent tax years until you contact the Department of Revenue by phone or emessage opting out.
If you believe you're a victim of tax identity theft, contact DOR at (617) 887-6350.
Members of the public who suspect that an individual or business is committing tax fraud should complete CIB Form 001E (Intelligence Referral) and email it to CriminalBureau@dor.state.ma.us or mail it to:
Massachusetts Department of Revenue
Criminal Investigations Bureau
100 Cambridge Street, Suite 700
Boston, MA 02114
Discover more about CIB’s mission to maintain the integrity of the Commonwealth’s tax system.