Dear Liz: I sent my tax preparer everything he needed for my return, including the originals of my W2 forms, bank 1099s, property tax bills (including a copy of the check showing the payment) and a year-end mortgage statement. A week later he said it was done and that he had mailed the return and paperwork back to me. It’s been three weeks and I still haven’t received the paperwork. What I did get was a direct deposit of my refund, so apparently he filed the return without telling me. I am sick to death that all my private financial information is floating around in the mail system somewhere and that it could get into the hands of a dishonest person.
Answer: You’ve learned a couple lessons, foremost among them that you need a new tax pro. Filing your return without letting you see it was a definite no-no.
Another lesson is that your private financial data probably shouldn’t be entrusted to the U.S. mail system. It’s more secure to drop your documents off with your tax preparer and pick them up yourself, along with a copy of your return, when he or she is done. The original return can be electronically filed using the IRS’ secure, encrypted system, eliminating the need to use the mail.
You can put 90-day fraud alerts on your credit reports at the three major bureaus (Experian, Equifax and TransUnion). Fraud alerts notify lenders that they should take extra steps to verify identity before opening accounts in your name. For more protection, you may want to consider a credit freeze, which doesn’t rely on lenders’ sometimes-wavering vigilance but that allows you to shut off access to your credit reports, preventing thieves from opening new credit accounts. For more information, visit the Consumers Union site www.financialprivacynow.org.