The federal tax filing season begins Monday and the Better Business Bureau of Nebraska says if your are expecting a refund file early to avoid being scammed.
The tax season runs from January 24 through April 18, but spokesman Josh Planos says file as early as you can. “Certainly more time for fraudsters to steal your identity and then steal that potential refund out from under you. The longer you wait the more of a runway they are given.”
The result of that could be a monumental headache for you as you go through the painstaking and lengthy process of trying to correct your standing with the IRS. Planos says make sure you double check forms for misspelled names or incorrect social security numbers.
He says IRS staffing shortages and pandemic-related increased workloads means it’s likely your taxes will be processed at a slower pace this year. The IRS is urging people to file returns electronically. The expectation is that a refund will be delivered within 21 days.
The BBB has outlined steps you can take to lower the odds that you’ll be victimized by a tax scammer:
- Check and double check the forms sent from employers to make sure information is accurate. Potential trouble-causers include a misspelled name or an incorrect Social Security number.
- Watch that your employer gets your W-2 or 1099 form to you by January 31. Any delay warrants your inquiry immediately with your employer first and then with the IRS. If the form was sent to the wrong person or stolen, big trouble could follow. IRS does have Form 4852, which you could use as a substitute for your W-2.
- If you are notified of a duplicate return by the IRS, respond to them immediately. You may have been ripped off by an identity thief.
- Inquire immediately if you receive notice from the IRS that you received wages from somewhere you did not work.
Look out for an IRS notice saying you owe additional tax, a refund offset, or you have had collection actions taken against you for a year during which you did not file a return. Respond immediately if you get one. - Make it a steadfast practice to never, ever give out your Social Security number to someone if you aren’t sure they have a legitimate reason to get it.
- Remember that you are responsible if your tax preparer does something incorrectly. For that reason, you must thoroughly check up on the preparer’s credentials. Check them out at bbb.org. Reject any preparer who says they will base their fee on the amount of your refund.
To report a tax scam, go to BBB Scam Tracker.