According to Forbes, the Internal Revenue Services (IRS), paid out $5.8 billion dollars in fraudulent tax refunds in 2013. The issue of tax identity theft is a growing problem, and you might be concerned about your money, social security number and privileged information being stolen. Luckily, there are several simple things you can do during tax season to help protect your identity and money. Here are a few ways to protect yourself against tax identity theft:
Take Precautions
From digging through your garbage to more high-tech, phishing schemes, identity thieves utilize several different techniques to steal your privileged information. Luckily, there are a number of simple steps you can take all year long to help protect yourself:
File as Early as Possible
Even if you're extra cautious, it is still possible for an intrepid identity thief to find your privileged information – including your tax documents. Whether you're expecting a huge return or will wind up paying the IRS, it is important to file as early as possible.
The earlier you file, the more likely you are to beat tax identity thieves to the punch.
In many cases, if you file online or with a tax preparer or an accountant, you can file a few days or weeks before the IRS begins accepting returns. If possible, go ahead and file as soon as you can. If you're waiting on all your documentation, don't be afraid to ask your employer, mortgage provider and every other source of tax information to speed up their process.
Find a Reputable Tax Accountant
Hiring a tax accountant to file your returns is a great idea if you're a first-timer, your tax returns are complicated or you simply don't feel comfortable. Before you hand over all your personal documentation to a tax preparer, it is important to choose a reputable professional.
Here are a few questions you should ask any potential tax accountants before allowing them to handle your personal information:
Tax identity theft is a serious problem and, unfortunately, even individuals who are careful can become a victim. However, by safeguarding your identity and working with a reputable tax accountant, you can cut down on the chances of having your identity stolen.
If you do have any complications with your taxes, consider contacting a tax attorney, such as Wiesner & Frackowiak, LC, to discuss your concerns.
Share9 February 2016
Too many single people assume they don't need to plan their estate. My brother fell into this category, and his unexpected passing left our entire family struggling to deal with his home, belongings, and financial accounts. It took nearly three years for the courts to set up a deal because he left no paperwork detailing how he wanted his estate divided. The situation immediately convinced me to work on my own estate, even though I'm still in my early 30's and don't have children or a spouse to worry about. Since it's a little harder to pick beneficiaries and estate managers when you're single, I collected the resources I used for making my own decisions and decided to publish them here on my blog. Use these resources before talking to an estate planning attorney so you're prepared for making hard decisions.