The Season for Tax Fraud

The holidays are over, and we are settling in on a new tax season.  The IRS has reported drops in the number of frauds over the past several years - $852 million in 2015, $281 million in 2016, and $204 million in 2017.

But 2018 also had a record number of data breaches exposing millions of personal usernames and passwords from the Marriott breach and others.  Although tax fraud has decreased taxpayers should still be on the alert for stopped mail, electronic access to W-2 and 1099 information, unusual entries on your credit history, and unchanged passwords.  Additionally, with the government shutdown, the IRS will be under extreme pressure to process tax returns quickly – haste can allow fraud to pass un-checked. 

Take the time this tax season to:

• Change your passwords for tax related databases;
• Check your credit history to determine if someone might be using your credit;
• Be alert for missing or stopped mail;
• Be alert for phishing emails for credentials to log onto tax services;
• Double-check any notices, emails, phone calls from the IRS;
• Finally, if you are unsure, contact a tax attorney or tax accountant for advice.