Loading...
Identity theft tax refund fraud

Identity theft tax refund fraud

Introduction

The United States, Internal Revenue Service (IRS) identifies and refers to identity theft tax refund scam as the No. 1 fraud of the year, always coming into light when the tax season is in full spring.  Over the years, government have looked into possible measures that will be proactive in stemming this dangerous tide but it seems the identity tgives are sometimes, one step ahead of the agencies. We will take a  look at the anatomy of this scam and how it is perpetuated, what to do in cases of these nature and how to preserve one’s self from identity thieves.

Anatomy of the fraud

Identity theft tax refund scam, a growing epidemic in the society occurs when another individual lays hands on your Personal Identifying Information (PII) for example;name, social ecurity number and other identifying information and using this, they commit tax refund fraud. This tax refund fraud will include  using a legitimate taxpayer’s identity to file a fraudulent tax return and claim a refund in their name. So, when the legitimate owner files for a tax refund, the IRS sends him a message that the refund has been made already.

The identity thief will usually file the tax returns early enough and get the tax refunds early too, so that before the legitimate owner comes into the picture, they are long gone with their loot.

Financial Implications of Identity tax fraud

More then just making away with your tax refund, an identity thief with your personal identification information, can obtain credit cards in your name, take loans or mortgages, in fact pile up debts that will taint your credit history and make it harder for someone to navigate through the murky waters of debt.

Too, the government have spent billions of dollars in repaying tax refunds that have become n snatched away by identity tax thieves . This amount runs into huge money that could have been spent on more productive ventures. If you are contacted by the IRS or your tax adviser over : more than one filed tax return using your SSNor IRS records shows you have received salary from an employer for whom you did not workfor ,then you are most probably a victim of this scam. Learn more.

What to do next

If by any means, you suspect being a victim of identity tax refunds fraud then, youust report to the Federal Trade Commission, contact any of the major credit bureaus to place a ‘fraud alert’ on your credit record and reach out to your financial institutions,to close any financial or credit accounts opened without your authorization  or compromised  by the identity impersonators. If your SSN data have been breached, waste no time in contacting the IRS and fill the Identity Theft Affidavit,”IRS Form 14039″.

Prevention

Prevention, they say is better than cure. Hence, protecting your personal identification data from identity theft is will help the IRS and State inhibit the spate of tax refunds theft. Protect your social security cards and tax records jealously.Always use security software with firewall and anti-virus protection and  strong passwords too. Also learn to recognize phishing mails and fraudulent texts and calls posing as financial institutions.

Conclusion

The ripple effect of tax refunds fraud leaves no one unaffected, this establishes why we must join hands with state agencies to prevent identity thrives from plundering with our commonwealth. For more details, visit: https://www.taxreturn247.com.au/how-it-works

Please follow and like us:

If you’re the lucky recipient of a nice big tax refund

you might want to think about investing it in a new vehicle. It can be cost effective to keep driving a reliable older car for as long as it still runs well, but newer cars have a lot to offer in terms of efficient mileage, safety features, high tech options, and resale value. One thing that might keep you in your old car is the headache and hassle of going to car dealerships and shopping for a new car. For many people, an afternoon with a car salesperson is on par with a visit to the dentist in terms of things they’re looking forward to. Car buying doesn’t have to be a stressful, unpleasant experience, though. You can take charge of the car shopping process and drive off in a great car for which you didn’t spend a penny more than you wanted to, it just takes a willingness to do some homework and take some preparatory steps. If you’re ready to shop for a new car, here are three things you can do to make the shopping process work to your benefit.

 

  1. Get financing ahead of time

 

Rather than accept whatever financing terms the dealership can offer you through their bank, go to a bank or lending institution that you know and trust and get yourself pre-approved for a car loan. This way you’ll get the terms and interest rates you want, and you’ll have a solid plan for how much you’re willing and able to spend. You’ll also have more leverage and negotiating power when you’re dealing with salespeople when they know that you have a loan in hand and can take it right to another dealership if you don’t like what they’re offering.

 

  1. Know what you’re in the market for

 

Are you buying a commuter vehicle? A family car? A work truck? Do you know what manufacturer you want to go with, or are you at a complete loss? Doing research beforehand with online car buying sites can help you sort through your criteria and find a make and model that suits you, and the reviews and comparison tools you’ll find on those sites can help you make a final decision you can be confident in.

 

  1. Be willing to play the game

 

Don’t just take any offer the dealership gives you. If you’ve done enough research beforehand, you’ll know exactly how much the car you’re interested should cost, and what price they should be able to offer it to you for while still making a profit. Don’t get attached to any particular car, dealership, or salesperson. If you don’t feel like you’re getting a great deal, walk away! They’ll either try to win you back by offering you bigger savings, or you can give your business to a dealership that’s more willing to satisfy your wishes.

 

Car buying can be an empowering and even fun experience if you approach it with the right attitude and knowledge!

Please follow and like us:
I’m a Tax Fraud Victim. What Now?

I’m a Tax Fraud Victim. What Now?

Introduction

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.

* Remediation

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.

Conclusion

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

Please follow and like us: