IN THIS ISSUE
DID YOU KNOW?
- ARRANGE YOUR TAX PAPERS AND FINANCIAL RECORDS
- ESTABLISH AN ONLINE TAX ACCOUNT WITH THE IRS
- DECLARE ALL SOURCES OF INCOME
- SEEK ADVICE FROM A REGISTERED TAX PROFESSIONAL
- WHAT IS TAX-RELATED IDENTITY THEFT?
IMPLEMENT ROBUST PASSWORDS AND MULTI-
FACTOR AUTHENTICATION- BE ALERT FOR SCAM EMAILS,
TEXTS AND CALLS
Practical Tips for a Smooth Tax Filing Season and How to Protect Against Tax-Related Scams and Identity Theft
by Audrey Jackson
Did You Know?
Experts typically advise individuals to submit their tax returns promptly once they have collected all the necessary documents for form completion. .
Filing early is the quickest method to receive your refund. According to the IRS, individuals who file electronically and opt for direct deposit into a bank account should expect to receive their refunds within 21 days.
Arrange Your Tax Papers and Financial Records
Devote some time to sorting out your tax documents and financial records, as this can streamline the actual filing process. Begin with your tax return from the previous year. Having your last year’s return on hand ensures you have the necessary documentation for preparing this year’s tax return.
You can obtain a copy of your prior year’s tax return by requesting it through the IRS online portal. Alternatively, if you collaborated with a CPA or another tax professional, you likely received a copy of your return when you filed. While every individual’s tax situation is unique, Here’s a checklist of common tax forms and records to gather before filing your tax return.
Establish an Online Tax Account with the IRS
Creating an online tax account with the IRS is a convenient method for accessing your tax documents without the need for phone calls or mail interactions. Through this portal, you can log in to check payment balances, set up payment arrangements, and view past tax returns and reported tax forms.
Additionally, you can manage communication preferences, such as receiving email notifications from the IRS, and authorize a tax professional to assist you. It’s important to note that the portal does not support the electronic filing of your tax return.
Declare All Sources of Income
Report all your income sources, including additional earnings from activities like freelance work or side jobs, rental income from properties, and interest. Also, disclose any capital gains you may have. While your employer reports and pays taxes on your regular income, it’s your responsibility to ensure the accurate declaration of additional income.
Seek Advice from a Registered Tax Professional
A registered tax practitioner just like LAT Financial Group can provide valuable assistance during the tax filing process, particularly if your financial situation is intricate. They have the expertise to identify legitimate tax deductions that can potentially lower your tax liability. By ensuring the accuracy of your return, a tax practitioner helps minimize the risk of penalties associated with filing incorrect information For more in-depth details and specific inquiries concerning your tax circumstances, don’t hesitate to contact our team. We are available to offer comprehensive guidance and assistance to ensure a smooth tax filing process while mitigating any avoidable risks. Remember, being well-informed and properly prepared is crucial for a hassle-free tax season. Stay attentive to official IRS communications and seek advice from qualified professionals to optimize your tax filings.
What is Tax-Related Identity Theft?
Tax-related identity theft occurs when a fraudster utilizes your personal details, such as your Social Security number, to submit a false tax return under your name. This information may also be exploited to initiate activities like opening new credit cards or bank accounts, initiating loans in your name, and other unauthorized actions. These individuals can obtain your information through different methods. Some may send phishing emails, attempting to deceive you into clicking on links that appear to be from the IRS, while others might make phone calls to trick you into providing your information over the phone.
Implement Robust Passwords and Multi-Factor Authentication
Utilizing secure passwords and adopting multi-factor authentication is strongly recommended, despite the common tendency to overlook these precautions. Cybersecurity experts advocate for the use of a password manager to store account credentials securely.
Despite recent reports of major password managers experiencing customer data breaches, employing such tools remains a highly secure option, especially when complemented with multi-factor authentication. This authentication method demands users to validate their identity through two means, typically a password along with a one-time code sent to their phone or email, or even a fingerprint.
Be Alert for Scam Emails, Texts and Calls
Scam emails and text messages are prevalent throughout the year but tend to increase during tax season. Fraudsters may impersonate IRS agents, tax preparation firms, and other entities, as cautioned by the IRS.
To protect against fraud, cybersecurity experts emphasize the same advice: Avoid clicking on any links. If there’s uncertainty, visit a trusted site to review your tax filing, bank or credit card account, or contact the official number provided on the back of a card or the official website.
If you are a victim of identity theft make sure to Report the crime to the Federal Trade Commission then complete your IRS Form 14039, Identity Theft Affidavit, followed by request a copy of the fraudulent tax return from the IRS, alert national credit bureaus and lastly check your online bank accounts.
Educate yourself on identifying and avoiding phishing emails, as well as deceptive calls or text messages from impostors pretending to be entities like your bank, credit card companies, or the IRS. It’s important to note that the IRS will not initiate contact with you through email, text messages, or social media. If you receive an email claiming to be from the IRS, forward it to phishing@irs.gov. If you are uncertain, refrain from responding and directly contact the company to verify the legitimacy of the message or get help with tax professionals.
