By now, you’ve probably received your 2024 tax documents and are planning to hire a tax professional or prepare your own tax return using a popular software product. Here are some tips to consider:
- File your tax return as soon as possible. Tax identity theft generally occurs when someone steals your personal information to file a return and fraudulently obtains a refund. In recent years, concerns about identity theft have increased because of data breaches that have exposed individuals’ Social Security numbers and other sensitive information. The sooner you file your returns, the less likely it is that someone can falsely file under your name.
- Consider the benefits of obtaining a free identity protection personal identification number (IP PIN) at the beginning of the tax season. An IP PIN is essentially a secret code between a tax filer and the IRS that prevents thieves from successfully filing fraudulent tax returns using your personal information. More information about establishing an annual IP PIN is available here from the IRS.
- If you choose to use a tax preparer, make sure that the preparer has the proper credentials by visiting the IRS’s Directory of Federal Tax Return Preparers or by confirming a Certified Public Accountant’s credentials. Before having your tax return prepared, request a complete breakdown and explanation of all expected charges. Consider asking trusted friends and family members for preparer referrals. Thoroughly research businesses with the Ohio Attorney General’s Office and Better Business Bureau, as the preparer you choose will have access to your Social Security number and other personal information. Remember, you’re ultimately responsible for the accuracy of your return.
- Protect your personal information. If you file your tax return online, use a secure internet connection; if you file by mail, take your completed return directly to a post office. Keep sensitive documents in a secure place. Shred any unneeded documents containing your Social Security number or other sensitive information.
- Consider the costs of any “fast” refunds. Offers for instant or “fast” refunds might actually be costly refund-anticipation loans or refund-anticipation checks. These products might involve substantial fees and diminish the amount of your refund. When your taxes are filed electronically, you can have any refund directly deposited into your bank account, typically within a few weeks. When filing, be sure to double-check the account number into which the refund will be deposited.
- Report abusive tax preparers to the IRS. Most tax preparers are honest and serve their clients well. Some, however, are out for their own gain. Report abusive tax preparers and suspected tax fraud to the IRS. Use Form 14157, Complaint: Tax Return Preparer. If you suspect a tax preparer filed or changed your tax return without your consent, file Form 14157-A, Return Preparer Fraud or Misconduct Affidavit.
- Review the IRS’ list of tax scams to avoid losing money and/or personal information.
Many consumers use their tax refunds to make large purchases. In the same way you should research tax preparers, be sure to thoroughly research any big-ticket item you want to buy and the business(es) selling it. For instance, if you choose to buy a car with your tax refund, make sure you research the business, test-drive the car and have the vehicle inspected prior to purchase.
If you suspect a scam or an unfair business practice, contact the Attorney General’s Office at www.OhioProtects.org or 800-282-0515.