MUST Read This Before Filing Your Taxes – Smarter Finance Journal

MUST Read This Before Filing Your Taxes

taxes Think you’re safe after you file your taxes? Think again…

It’s that time of year again. That’s right, the deadline is approaching to file your taxes, but before you do so, it’s important that you understand the risks involved.

According to reports, identity theft crimes are continuing to rise. In fact, one of the ways these criminals are targeting their victims is by filing illegitimate tax refunds.

The scam is pretty simple. After they access your personal information, they file the return and designate their own bank accounts as the recipient of the return. The scam has been so prevalent that it has even affected high-ranking political figures such as the U.S. Attorney general, Eric Holder.

How does one know if they have fallen victim to this crime? In short, don’t wait until the last minute to file your return. According to Justin Gelfand, an attorney in St. Louis Missouri, “A typical identity theft victim will find out by filing their tax return and learn the IRS can’t process it because someone else has filed using their name and Social Security numbers, or you may also get a suspicious piece of mail from the bank offering a refund anticipation loan, or from the IRS.”

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The IRS is losing five billion dollars a year through falsified tax returns. With this in mind, try to protect yourself as best you can by filing early, not giving out your information on the internet or over the phone, and shredding important documents.

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