Tax & Business Alert – January 2024
232
words
Abstract:
The
IRS will soon announce the opening of the 2023 individual income tax return
filing season. Even for taxpayers who don’t typically file until much closer to
the April 15 deadline (or file for an extension), it’s a good idea to file
earlier this year. Why? One major benefit is to protect against potential tax
identity theft.
The
IRS will soon announce the opening of the 2023 individual income tax return
filing season. Even if you typically don’t file until much closer to the April
15 deadline (or you file for an extension), consider filing earlier this year.
Why? A key benefit is that you may be able to protect yourself from tax
identity theft.
How is a
person’s tax identity stolen?
In
a tax identity theft scheme, a thief uses another individual’s personal
information to file a fraudulent tax return early in the filing season and
claim a bogus refund.
The
real taxpayer discovers the fraud when he or she files a return. The taxpayer
then hears from the IRS that the return is being rejected because someone has
already filed a return with the same Social Security number or tax year. While
the taxpayer should ultimately be able to prove that his or her return is the legitimate
one, tax identity theft can be difficult to straighten out and can significantly
delay a refund.
Filing
early may be your best defense: If you file first, it will be the tax return
filed by a potential thief that will be rejected — not yours.
Do you
need help?
If
you have questions or would like an appointment to prepare your return, please
contact us. We can help ensure you file an accurate return that takes advantage
of all of the breaks available to you.
© 2023