Identity theft is a big problem when it comes to tax season. While you may think that you are safe, there are many cons who try to steal your identity in order to make money. How this works is someone, or a group of people, get ahold of your social security number. They will then go online and file a tax return, filling in their own information in order to receive a tax refund. They hope to get that refund in their accounts before anyone notices that something is not quite right.
Later on, when you decide to file your tax return, the IRS is going to notice that two tax returns were filed with the same social security. Depending on the information that is on file, they may be able to determine that someone used the information in fraud. For example, if your employer sent in work information for you and the first tax return didn’t match up to this information, they are going to know something is up.
Despite you having done the right thing and followed all the rules, the path to getting it figured out is going to take you some work. You will most likely need to log onto a website and prove who you are. The IRS will then need to track down who got the refund and work to ensure that no one else has been taken advantage of as well. This is a messy slope and if the fraudster was able to get your tax information, you are going to need to be on alert for any other suspicious behavior when it comes to your financial accounts.
Your local tax professional will be able to help you file your taxes on time so you can avoid identity theft. While this is a common issue, you can take some steps to ensure that it does not happen to you. With the help of a tax professional, you can get the assistance that you need without being taken advantage of by those trying to steal your money.
File Early On
An important thing that you need to do during tax season is file that return early on. The longer you wait to get the tax return done, the more likely someone is going to be able to beat you to it and the more trouble you will have. When you file early, you are more likely to get your return in first and the IRS can process it long before someone else can. If the IRS already has information in for you and another tax return comes in with the same information, they can stop it before someone runs off with a tax refund that does not belong to them.
So timing is of the essence when it comes to doing your tax return. You and your tax professional will be able to start as soon as all the paperwork comes in. Whether you have a simple or more complex tax return, make sure you get the professionals on your side to do it right the first time.
Pick Reputable Tax Professionals
While most tax professionals are reputable and will do a great job helping you to get your tax return done right the first time, there are always those people who are willing to do things the wrong way. Some of these may be tax professionals who are taking advantage of you, but often it is more likely to be people pretending to offer services who then steal your information. If you aren’t careful with your information and about who you work with during tax time, you could end up in trouble when your identity is stolen.
There are a number of things that you can do about this situation. First make sure that you go to someone who has the right credentials to prove they have experience. If they aren’t willing to provide these credentials, then go with someone else. Also, take some time to talk to the professional. Often having some communication with the professional will make all the difference in whether you feel comfortable working with them.
Report Suspicious Behavior
One of the best ways to ensure that your identity is not being stolen is to report anything that might seem a little bit off. If you check your credit score and the numbers just aren’t adding up to what you assume they should be, or you have been getting suspicious mail that you can’t explain away, it is time to do some investigation. It is common for many thieves to go in and try to get refunds and other money from you and if they have your information, the tax return may not be the only place they search for. Finding the discrepancies and reporting them early on can make a difference when it comes to getting it to work out on your side.
Identity theft is a big issue when it comes to tax season. There are many people who have become rich by taking social security numbers and then putting in false information for a profit. Make sure to protect your identity as much as possible and get your tax return in on time. A tax professional in your area will be able to help you out with this final part, giving you the peace of mind knowing that your tax return is done right the first time.
M-E Accounting & Tax Services, Inc.