Are you apprehensive about id theft-related tax fraud scams?
Our Retirement Daily’s Robert Powell caught up with Jeffrey Levine, CPA and tax professional from Buckingham Strategic Wealth Partners, to offer some steerage on id theft because it pertains to your tax return.
Video Transcript| Jeffrey Levine, CPA and Tax Expert, Buckingham Strategic Wealth
Robert Powell: What might be carried out to ensure you do not turn into a sufferer of id theft-related tax fraud scams? Here to speak with me about that is Jeffrey Levine from Buckingham. Jeffrey, welcome.
Jeffrey Levine: It’s good to be with you, Bob. So many alternative methods by which tax scams can happen. So we might spend the subsequent a number of hours, Bob, speaking about this. But at a excessive degree, I believe there are some things that taxpayers can do to assist in giving themselves one of the best alternative to keep away from scams. First off, at any time when you might be sending data to and out of your tax skilled, be sure that any data that you just undergo a tax skilled or that you just retailer on-line is safeguarded by way of correct channels. It’s encrypted whenever you add it. It’s encrypted whenever you ship it. This method, if somebody occurs to entry your electronic mail or will get it in transit, they are not in a position to entry your private data.
Recommended Read: Identity Theft: What to Do if Someone Has Already Filed Taxes Using Your Social Security Number
Watch the video interview above, or learn the video transcript under.
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It’s additionally vital to know that the IRS is just not calling you as much as let you know that they will knock down your door and take you to jail when you do not pay. The IRS would not function like that. You ought to count on to get letters from them within the mail when you do not pay. But nobody is looking you up saying you did not pay. And when you do not pay now we’re coming in with a SWAT group tomorrow. That’s not going to occur.
Thirdly, I’d encourage of us to file as early as attainable. Now, generally it is not attainable since you’re nonetheless ready on data, however in case you have your whole data obtainable, submitting early is definitely the most effective methods to mitigate tax fraud, as a result of what a whole lot of fraudulent filers do is that they file as shortly as they will utilizing another person’s data. They request a refund, after which that refund will get paid out. And by the point the IRS realizes there’s a problem, nicely, it is whenever you submit your actual return, which now they reject as a result of they are saying, hey, however we have already got the return on file for you. So when you file first, when these fraudulent filers go to file, they’re going to be those who get blocked and must submit proof, which they do not have that they are truly actually you. Whereas when you submit later, nicely then you definitely’ve given them extra time to file a return first utilizing your data that may delay the processing of your return, delay any refunds you are entitled to, and many others. So that’s an under-utilized however useful method to mitigate the potential for fraud.
Robert Powell: Right, you talked about that the IRS will not be calling you. What about emails?
Jeffrey Levine: Chances are when you’re getting an electronic mail from the IRS, it is not from the IRS. Yeah, be extremely cautious about clicking on issues, hyperlinks, and many others., phishing makes an attempt are up and it simply takes going, clicking on one dangerous hyperlink may give a prison somebody like that entry to take over your pc or entry to that they will see or probably set up keystrokes observers to look and see what you are typing sooner or later to get data and entry to your password. So at all times be extremely cautious and diligent about sharing that materials and about what you click on on in your electronic mail.
Any questions? Call them straight, which I do know generally is a problem, however that’s at all times the most secure method to go. So if an establishment, not simply the IRS, but when an establishment calls you and asks for any data, you need to say, I’m sorry, I do not give that out over the telephone to individuals who name me, then go search for the variety of that establishment. So even when it is a financial institution or a credit score union or one thing like that, in the event that they name you, possibly you are late on a fee. OK, thanks for letting me know. And I’ll name again that quantity that is on the again of my bank card or what’s in your financial institution web site. And then I’ll give the data in order that I’m certain it is an actual licensed one who’s getting that.
Editor’s Note: The content material was reviewed for tax accuracy by a TurboTax CPA skilled.
Zach Faulds contributed to the writing of this text and produced the video and/or the graphics related to it.