Tax fraud is one of the most popular scams and even rated No. 1 scam according to IRS. Imagine filing your tax returns for a year and the IRS rejects it, because it claims a different tax return have been filed with your Social Security Number (SSN). These identity theives usually steal others Personal identity information and use them to file fraudulent tax returns expecting tax refunds later. Although there have been proactive measures by the IRS to comabat this epidemic, it seems this fraudsters are always a step ahead .
Signs that you have fallen victim of tax fraud
People only get to know that they have fallen prey to tax fraudsters when their electronic filing is blocked or the IRS sends letter seeking to confirm their identity or verify a tax return that was submitted. This arises in cases where two contradictory tax returns are filed using the same SSN or IRS records show that you received more wages from an employer unknown to you . This will possibly stall your tax refunds from being paid and your state or federal benefits, reduced or cancelled.
Steps to take when affected by tax fraud
On detecting any of the telltale signs of being scammed by tax fraud thieves, it is wise that you waste no time in responding and contacting the IRS ,because you could be averting further complications .
*Report to the IRS :
A very important step in combating tax fraud is to inform the IRS whenever you suspect that you are a victim. You will be required to fill an Identity Theft Affidavit form. So, they can take note of the breach of security on your SSN. Also,Report incidents of identity theft at the Federal Trade Commision(FTC) and the local police.
Furthermore, other steps are recommended by the Federal Trade Commission to curtail the spread of the tax fraud beyond tax return. This is in the light that anyone who lays hands on your sensitive personal information may likely do more than filing fake tax returns. Learn more.
* Fraud Alert
Reach out to any or all of the three major credit reporting agencies(Equifax, Experian or TransUnion ) to report your identity theft case and asking them to place a fraud alert on your credit file. This will prevent further transactions using your SSN or the probability that the tax scammer will use your identity to get credit or loans, which he/she doesn’t hope to repay. By the virtue of filing a fraud alert , you can request for a credit report and review them for any suspicious activity.
Using the Identity Theft Affidavit gotten from the FTC, approach the local police and file a police report. Both documents (Identity theft affidavit and police report ) will make up the identity theft report aid you in gettig fraudulent information off your credit report and restrict companies from deducting debts accumulating during the period of tax fraud.
Tax frauds have grown into a serious issue in the society, costing government and individuals billions of dollars yearly. Avoiding the snares of these tax refunds scammers will require a lot of diligence and meticulousness, but while we are still entrapped, the above steps are the sure ways to follow. More details in site: https://www.taxreturn247.com.au/how-it-works