Tax season is here and with it comes increased security risks for payers. For most of us, tax season is already enough of a hassle without having to worry about falling victim to fraud. Unfortunately, fraudsters are always on the prowl and tax season provides the perfect opportunity to exploit taxpayers, especially when it comes to estimated tax payments and check fraud. Understanding how these scams work and taking proactive steps to protect yourself can help you avoid financial losses and unnecessary stress.

One scenario that is all too common for taxpayers goes something like this: A taxpayer makes estimated payments via check throughout the year. However, after filing, they receive a notice stating that they have a still have a balance due and the IRS has not received their estimated tax payments. This is because a fraudster intercepted and endorsed the check before it could reach the IRS. The worst part? Estimated tax payments need to be made throughout the year for many individuals. However, if the government never received the payment, the taxpayer won’t be notified until after the return has been filed. In some cases, this could be well after the period allowed to notify the bank of fraud. This means that not only are taxpayers out the money that was stolen, but they still owe their taxes and must fill out additional forms to alleviate penalties and interest.

Individuals and businesses are more at risk than ever for credit-card fraud, identity theft, account hacks, scams, and so much more. Every time we turn around, there seems to be something else we have to be vigilant of and protect ourselves from, especially when making payments. Mailing a check sometimes feels like the safest thing you could do these days. However, as the above scenario demonstrates, even writing checks requires some extra steps to ensure that the payment makes it to the intended destination. So, what can you do differently when paying your taxes? Below are three strategies for success.

1.​ Make tax payments electronically

Create an online account with the IRS or your state government agency and consider paying your estimates directly to the government agency through your online account. Electronic payments reduce the risk of check fraud and ensure immediate processing. Online accounts are also ideal for verifying your payments are properly applied to your account. For added security, reach out to confirm the government agency received and properly applied the payment to your account.

2.​ Exercise caution when mailing checks

If paying your taxes by check, make sure to review the endorsements on your next bank statement by examining the back image of the cancelled check. In addition, the risk of mail theft increases when using home mailboxes, so be sure to mail your check directly from the post office.

3.​ Act quickly if you suspect fraud

If you receive a notice from the IRS or a state agency regarding a missing or late payment, do not assume it is an error. Promptly forward any tax-related notices to a tax professional for verification and assistance. Furthermore, if you believe a tax payment has been intercepted or stolen, notify your bank immediately. Also be sure to report the issue to the IRS and your state tax agency as soon as possible and file any necessary forms to dispute fraudulent transactions and request penalty relief.

Taxpayers are facing more threats than ever. While no system is completely foolproof, taking proactive steps can significantly reduce your risk. By exercising caution when mailing checks — or better yet, paying online — and reporting suspicious activity right away, you can protect yourself from becoming a fraudster’s next victim this tax season.

For further guidance or specific concerns about tax-payment security, don’t hesitate to reach out to a tax professional. Taking action now can save you time, money, and stress in the long run. Stay vigilant, and keep your finances secure this tax season.        

Rochelle Moore is a principal in The Bonadio Group’s Small Business Advisory Group, with more than 15 years of public-accounting experience. Her expertise is focused on special-project consulting, including strategic planning, projections, mergers and acquisitions and general tax compliance, with an emphasis on the real estate and service industries.