Electronic filing of tax returns has cut down on paper, made the filing exercise more convenient and opened up refunds more quickly.
But it also has created new security risks for unwary taxpayers.
• Tax and financial documents: To keep or toss?
Now that you've gone through the annual ritual of filing an income-tax return, you need to decide what to do with all those records. How long should you retain certain documents, and which ones? How does computer or Internet storage factor into the equation? You don't necessarily want to store all this stuff. What follows are suggestions for keeping what's critical while cutting down on the clutter:
All that sensitive information, he warns, can be accessed through viruses, spyware and other means, including computer thefts.
Here are some suggestions for averting foul play and other problems:
• Don't open e-mails seeking personal information that purport to be from the Internal Revenue Service. The IRS doesn't contact people this way.
• Be careful about sending e-mails of tax documents that contain Social Security numbers or other sensitive data because e-mails aren't secure.
• Use complex passwords when dealing with sites or files containing sensitive information to reduce the risk of hacking.
• Use the latest versions of operating systems and Web browsers. Products such as Microsoft Internet Explorer 8 have enhanced security features built in, said Paul Baird, a technology strategist for Microsoft in Phoenix.
Once you have installed them, stay current on any patches and upgrades offered. Also, install the latest versions of anti-virus software, he suggests, and turn up the security settings on your browser.
• Be wary about storing tax or supporting documents on your computer. It's a good idea to clear your browser's history and delete downloaded files you don't need.
• Don't save passwords on your Web browser when connecting with banks, online tax-preparation sites and so on. Passwords stored this way could be hacked or stolen through viruses or other means, Feinman said. Close browser windows after you have completed transactions.
• Make sure the tax and other Web sites that you deal with are secure. When checking URLs, the letter "s" in "https" indicates a secure session, Baird noted. He also suggests doing some background Internet research
on online tax-preparation sites, especially if they're touting free services. "Maybe they're mining for personal information, so do some research on them," he said.
• Copy your completed tax return to a CD or DVD stored in a fireproof safe or in a safe-deposit box.
"I try to keep it off the (computer) system," said Baird. "Off-site protection also is good if your house burns down and takes your computer with it."
• If sending your tax return through the U.S. Postal Service, use certified mail and place it in a secure location at a post office or official collection box, Feinman said. Don't drop tax returns into a box where they'll sit overnight.
It's easy to e-file, but avoid theft risks that follow
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