How to Avoid Tax Fraud Schemes
Tax season is a hectic time for many taxpayers as they work towards filing their returns in good time.
However, this season also comes with a myriad of tax schemes and identity theft.
Every year, many taxpayers fall victim to such unscrupulous people who take advantage of the pressure of the season to steal from unsuspecting taxpayers.
It is therefore, wise to ensure that you are careful with all your information and tax transactions.
Below are some tips that will help you keep off from these fraudsters: Keep Personal Information Private A lot of tax related fraud happens through identity theft.
In this case, a schemer uses the personal details of an unsuspecting taxpayer and files a return using these details.
He or she claims a refund check, which is cashed without the actual taxpayer knowing about it.
When the genuine taxpayer files a return, it is only then, that he or she discovers that a fraudster already filed a return using his or her personal details.
To avoid having your personal information being stolen, ensure that you keep such information private and only release the information to authentic authorities.
Furthermore, if you file early in the year, there will be less of a chance of a crook to file before you and steal your refund.
Verify All Information Received There are also tax related fraud schemes where a tax preparer files a fictitious return on behalf of his or her clients and claims refunds that are not warranted to the clients.
It is the responsibility of the taxpayer to ensure that the information filed is accurate and correct and their preparer has a good reputation.
Also, ensure that you review the information completed by your tax preparer before putting your signature on your return.
You should also never sign a blank Form 1040 for your preparer to fill and return.
Properly Review Your Tax Preparer Given that there are quite a number of tax related frauds that are carried out by authentic tax preparers, it is important that you carefully review and research the tax preparer to handle your tax returns.
Tax preparers require a Preparer Tax Identification Number (PTIN) to practice.
Besides this, you may consider working with a CPA, Enrolled Agent, or an Attorney who has extra professional qualifications to handle your taxes.
IRS Does Not Send Out Emails Every year, there is a myriad of email spam that is doled out to U.
S.
email users that claim to be from the IRS requiring information or some sort of action.
The IRS has time and again, advised taxpayers that it never sends out emails.
The IRS may give you a call or send a letter to your address, but they do not send out emails.
Therefore, even when emails come with the IRS.
GOV address, simply ignore these emails.
In case of any doubts, call the toll free IRS number and request for assistance or verification before acting on any communication purporting to be from the IRS.
However, this season also comes with a myriad of tax schemes and identity theft.
Every year, many taxpayers fall victim to such unscrupulous people who take advantage of the pressure of the season to steal from unsuspecting taxpayers.
It is therefore, wise to ensure that you are careful with all your information and tax transactions.
Below are some tips that will help you keep off from these fraudsters: Keep Personal Information Private A lot of tax related fraud happens through identity theft.
In this case, a schemer uses the personal details of an unsuspecting taxpayer and files a return using these details.
He or she claims a refund check, which is cashed without the actual taxpayer knowing about it.
When the genuine taxpayer files a return, it is only then, that he or she discovers that a fraudster already filed a return using his or her personal details.
To avoid having your personal information being stolen, ensure that you keep such information private and only release the information to authentic authorities.
Furthermore, if you file early in the year, there will be less of a chance of a crook to file before you and steal your refund.
Verify All Information Received There are also tax related fraud schemes where a tax preparer files a fictitious return on behalf of his or her clients and claims refunds that are not warranted to the clients.
It is the responsibility of the taxpayer to ensure that the information filed is accurate and correct and their preparer has a good reputation.
Also, ensure that you review the information completed by your tax preparer before putting your signature on your return.
You should also never sign a blank Form 1040 for your preparer to fill and return.
Properly Review Your Tax Preparer Given that there are quite a number of tax related frauds that are carried out by authentic tax preparers, it is important that you carefully review and research the tax preparer to handle your tax returns.
Tax preparers require a Preparer Tax Identification Number (PTIN) to practice.
Besides this, you may consider working with a CPA, Enrolled Agent, or an Attorney who has extra professional qualifications to handle your taxes.
IRS Does Not Send Out Emails Every year, there is a myriad of email spam that is doled out to U.
S.
email users that claim to be from the IRS requiring information or some sort of action.
The IRS has time and again, advised taxpayers that it never sends out emails.
The IRS may give you a call or send a letter to your address, but they do not send out emails.
Therefore, even when emails come with the IRS.
GOV address, simply ignore these emails.
In case of any doubts, call the toll free IRS number and request for assistance or verification before acting on any communication purporting to be from the IRS.
