Preventing Tax ID Theft Begins with Knowing Your Risk Level

Before you can protect yourself from identity theft, you need to ask yourself where your critical vulnerabilities lie. Tax identification theft is one of the fastest growing identity crimes in the world of identity fraud. Whether you are a private individual or a business owner, identity thieves are waiting to take advantage of your Tax ID. Do something about it.

How is Your Tax Identity at Risk for Identity Thieves?

Evaluating your tax identity risk is one of the smartest decisions you can make. And it's the smartest place to begin the process of protecting yourself from tax identification fraud. Any of the following government-issued, tax-related identity numbers places you at risk for tax identification fraud. These Tax ID numbers can be used by thieves to gain access to other types of information about you. Don't let that happen! Understanding the types of Tax ID you have is the first step in securing your tax identity from fraud.

Social Security Number

Your Social Security Number is probably the most important means the government and your creditors have of identifying you. Virtually every American has a nine digit number used by the federal government to monitor of your social security access. Because this Tax ID is universally used and specific to each individual, private lenders and creditors love to use Social Security Numbers as a way to keep track of their clients. Just imagine what an identity thief could do with your Social Security Number!

Employer Identification Number

An Employer Identification Number is more commonly referred to as an EIN. This numbers primarily concerns business owners. They are issued by the IRS in order for the federal government to identity your business as an entity.

Individual Taxpayer Identification Number

An Individual Taxpayer Identification Number, or ITIN, always starts with a 9 and works like a Social Security Number. In fact, it is even formatted like one. ITINs are available to certain foreign nationals, their spouses, or children who cannot obtain a Social Security Number.

Taxpayer Identification Number for Pending US Adoptions

The IRS awards Adoption Taxpayer Identification numbers to parents in the process of adopting an American child but who are unable to obtain a Social Security Number for that child before their tax filing deadline.