Tax Fraud

The 2015 tax season is upon us and with this time of year comes tax fraud. False tax returns are an increasing problem, costing taxpayers billions of dollars every year. The IRS is making improvements to block fraudulent refunds, but we all need to do our part to help stop this. How can you help?  

• File before the fraudsters do. Don’t wait to file your taxes. The sooner you can get them filed, the better. It does not matter if you are paying in or getting a return. The fraudster can still file using your personal information and then change the income information to meet their needs to generate a refund.  This leaves a big mess for you when you try to file your own legitimate taxes later. 
• Get a free credit report. Consumers are entitled to a free copy of their credit report from each of the three bureaus each year.  Be sure to dispute any unusual activity you see on your credit file.
• Change your password. If you are filing online, be sure you update your password to something complex. It is a good idea to change your password with each filing year.
• Contact the IRS. If you determine your information has been compromised or a tax return was filed in your name by someone else, contact the IRS right away to report it. 
• Protect your account. If someone asks you to allow their tax refund to come into your account because they claim they do not have a bank account of their own, do not allow this.  Odds are the tax refund coming into your account is fraudulent.  They would be using you to commit fraud and you could be subject to criminal charges.