There is most dreaded time of the year for Americans everywhere season tax. Last year, tax fraud records of instances, security issues at both the state and federal level raising eyebrows. Although many efforts have been made by governments and tax preparation services to increase safety, the fact remains that the tax identity theft is an issue that all taxpayers should be aware and take action on their own to try to get round. Although the IRS has worked to convict nearly 2,000 identity thieves during the past year, there is always more criminals who are hiding at the approach of the tax season. Unfortunately, identity thieves are able to remaining a step ahead of those who seek to destroy them. - What makes it necessary for ordinary people to take precautions to keep themselves protected
What is the tax identity theft
tax identity theft is enough simple - it happens when someone files a tax return using information from someone else and receives a fraudulent tax refund back. Unfortunately, victims usually do not know they have been targeted in this way until it happens, since the most common way to discover that you have been tax identity theft victim is to deposit your tax return and to tell the IRS that someone has already filed using your information.
What can I do to try to avoid the tax identity theft this tax season?
1. File as early as possible. Putting off doing your taxes seems almost like a national pastime, but it is easily one of the worst things you can do, because it gives thieves a lot of time to produce a fraudulent tax return for you . Tax season has officially launched on 19 January and the official deadline for employers to post on W-2 forms to employees is January 31, so be on the lookout for the months of January and February. If you have not received your W-2 (s) at the end of February, it is a good idea to contact all employers must you know where yours is. How the tax works identity theft is that thieves file fraudulent forms in the hope they beat you to the punch. The sooner you file, the less likely that will happen.
2. Keep your tax data and personal information. We hope that you know better than to carry your social security card with you, but you should also try to keep him locked up somewhere safe like a lock box or a locked cabinet. The same goes for all other important documents and data related or not taxes that could be used to help a thief taxes on your behalf file. Be sure to shred all documents done, rather than throwing them into the garbage, as identity thieves love dumpster diving garbage, and take care to take the same precautions with computer files you do all the physical documents.
3. Avoid falling victim to phishing scams. Every year, thousands are compromised after clicking on links in fraudulent e-mails they receive. Some scammers are able to create very sophisticated-looking emails that mimic what you see from the IRS or a popular tax preparation service. It is essential that you pay attention when reading your email and avoid clicking links or download attachments unless you are 100% certain that you know the message comes from a legitimate source. Remember, the IRS does not contact people via e-mail or phone problems regarding tax returns - this type of contact usually comes only through mail. Regarding the e-mails and phone calls with high suspicion is a great way to keep you safe from scammers.
4. Be careful who you trust to do your taxes. Unfortunately, most of the authors of tax evasion are the same people who offer to prepare and submit your taxes for you. Depending on your financial situation, it might be necessary to consult a professional to ensure you cover all the details - but it is important to be sure that you use a preparer or a trusted service. Some of the online tax preparation services the best, such as H & R Block, offers consultations in person, and while it might be cheaper in the short term to use the services of a person to advertise on Craigslist or running an operation on a living room, you could end up paying much more in the long run if you use a person / service that is either dishonest or does not have the appropriate security measures in place to prevent flight service to their clients.
5. Contact the IRS immediately if you think something is wrong. Unfortunately, the only way to know that you have been tax identity theft is to file your taxes and receive word that taxes have already been filed using your information. If this happens, or if you suspect that your information may have been part of a data breach or otherwise stolen, it is important to contact the IRS or your local state tax officials as soon as possible . There are forms that you can fill out to report that you have been victim of tax fraud that will help ensure you do not get hit by fines or other legal actions on the line. The good news is it's possible to receive your refund, even if a thief has already beaten you to the punch -. It may take time and effort on your part while the IRS sorts everything out
Although the tax identity theft is not 100% preventable, following these steps can help you less likely target. For more information on protecting your identity throughout the year, visit our review of protective services against identity theft top.