Beware of Tax Refund Fraud

Do You Know How to Protect Against Tax Refund Fraud?

It’s that time of year again, tax season. While citizens and corporations dread gathering up W2s, 1099s and various financial statements for filing, guess who is looking forward to it – tax scammers. They prey on our fear of an audit and the natural weight of “authority” any correspondence from the IRS instills in the American or corporate taxpayer. Don’t be fooled. Learn what to watch out for to detect a scam and protect your identity and/or the identity of your employees/clients. Types of Tax Fraud Aside from intentional fraud done by a corporation or individual, there are multiple types of tax fraud that are committed by outside parties. If not blocked or caught in time, a taxpayer can irrevocably be schemed out of their legally earned money. According to Internal Revenue Service (IRS), there were approximately $46 million claimed in fraudulent refunds during the 2018 filing season. There were also 2,204 confirmed falsified tax returns involving identity theft. To ensure an individual taxpayer or business does not become a victim of tax refund fraud, be aware of the following methods utilized to commit tax fraud: Fake calls from the Taxpayer Advocate Service (TAS) “Ghost” tax return preparer “Tax...

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