Tax Time TIPS

A majority of Americans will finish filing their taxes this weekend. I wanted to give you a few reminders to help you keep your information safe.

It is important that you are aware that most photocopiers produced in the last five years contain hard disk drives that keep a picture of every document copied over a historical period. This means that someone else can gain access to any document you photocopy. Most of these copiers don't include security software and encryption to protect or adequately erase data that is no longer needed.

The biggest threat comes from the companies that service photocopiers (you know, the ones who fraudulently call you and try to get you to order new toner or service your machine?). When repairing a photocopier, most any competent technician will know how to run a copy of all historical documents. Tax documents are particularly vulnerable because of all of the private information they contain.

There are several solutions:

1. Photocopy documents on a photocopier that has no hard drive
2. Photocopy documents on a copier that you own and can frequently erase the hard drive
3. Ask the company copying for you (e.g., Kinkos) if they maintain an image of your photocopy and how often they erase the drive (CHOP for those of you who have seen me speak)
4. Make sure you ask your CPA, Bookkeeper, Lawyer and Broker about their photocopy machines. Most of them probably don't even know that it is becoming a problem
5. Make sure you mail your tax return via USPS Registered Mail with Return Receipt in order to provide an extra level of security. Drop your filing off inside of the post office; never use the blue USPS boxes to mail sensitive documents (many of them get picked up at night by ID thieves and replaced by morning) and don't send it from your home or the office.
6. When you are done filing, store the documents in a locked filing cabinet or fire safe. You protect yourself against fire and theft at the same time.
7. Don't forget that it is also tax scam season. Ignore all faxes and emails that appear to be from the IRS. They are NOT FROM THE IRS, but are trying to get your private information from you. If you receive one of these faxes or emails, contact the IRS at phishing@irs.gov.