Identity thieves try to seize on the opportunity to file a fraudulent tax return showing a refund before the person they are impersonating submits their actual return. They set up the refund to be electronically transferred to a debit card or delivered to an address where they can steal the check.
Often, legitimate taxpayers don’t know anything is wrong until they attempt to file their real return and run into problems. This is a HUGE hassle.
The IRS puts the burden on you to prove that the return filed in your name is fraudulent. In Tom’s experience, it can take a year or more to get this straightened out. One of the best ways to avoid this is to file your return as soon as possible. That way, you’re beating the criminals to the punch.
You also should take precautions to protect your identity. Scammers like to prey on people’s fear of the IRS. They’ll often send emails, texts or phone calls posing as the IRS. Their goal: To scare you into sharing enough information that they can steal your identity or your money.
Remember, the IRS will NEVER:
Call you or text you to threaten you with a lawsuit or arrest
Ask you to provide personal or financial information by email, text or social media
Ask for your Identity Protection PIN by phone, email or text
And, if the IRS does ever need to connect with you, have your CPA handle the communication. They should be well-equipped to navigate any tax issues on your behalf. (If they aren’t, you need a new CPA… immediately!)
If you’re a business owner, investor or entrepreneur, you need a wealth and tax strategy designed to help you reach your financial and life goals.
Call the team at TFW Advisors® to learn how our system can accelerate your progress. There is no cost or obligation, and our team would love to meet you!