It’s that time of year again, the season that we all know and some of us dread—it’s time to file your taxes. Whether you have already done so or you are still waiting to file, one thing that you must be on the lookout for now more than ever is the burgeoning tax scam.
Identity theft
As technology becomes more sophisticated, those with nefarious intentions are taking greater advantage of advanced technological tools to steal your identity. One of the most common ways that identity thieves make money is by using your stolen information to claim a fraudulent refund. If you have reason to believe that any of your vital information was stolen, and that it has or can affect your tax accounts, be sure to check out the IRS webpage concerning identity theft here.
Phishing
Phishing is a method used by thieves to entice consumers to give them information of their own accord. Phishing was largely done over the phone in the past. Frauds would call, pretending to be a representative from the IRS and would notify you that there is something wrong with your tax return, after which they would usually request more personal or financial information. Now, phishing is more commonly conducted via email or the web. If you receive a suspicious email asking for personal information, delete the email immediately. If you feel as though the request for information may be legitimate, then call the IRS and confirm with them. For more information about phishing and how to report it, visit this IRS webpage.
Tax Preparer Fraud
Even though we would love to believe that the one person we can trust is the professional helping us file our taxes, refund preparer fraud is much more common than you think. If you hire someone to help you file your taxes, be sure that you select one based on credentials and referrals from friends and family. Any time a preparer promises sound way too good to be true, raise those red flags. Shop and ask around, and never go with a preparer who suggests that he will take short cuts or break the law in order to get you a larger refund. This can easily backfire and you’ll end up having to pay steep fees if you’re caught.
Even though we may feel as though tax fraud would never happen to us, it’s becoming increasingly common. Just be sure to be vigilant, and you’ll skate through tax season with the refund you deserve. Good luck!
Author Bio:
This is a guest post by Nadia Jones who blogs at online college about education, college, student, teacher, money saving, movie related topics. You can reach her at nadia.jones5 @ gmail.com.
© 2012, Bruce Mc. All rights reserved.
