Identity Theft and Tax Fraud – Do Not Become a Victim

Identity theft and tax fraud are serious problems that continue to increase in number and complexity as each tax season rolls by.  Accounting Today recently reported that the IRS identified 775,723 tax returns with $4.6 billion claimed in fraudulent refunds, as of April 30, 2011. The good news – the IRS prevented the issuance of $4.4 billion (96%) of those claims which is an increase of 171% over the previous year. Unfortunately, 4% of those victims were not so lucky.

Becoming a victim of identity theft and tax fraud can cause great hardship for individuals and family members. The Miami Herald recently wrote about a Miami Shores family who are struggling with the IRS to obtain their $8,000 tax refund after falling victim. Indeed, accountants at Kaufman, Rossin have witnessed many falsified returns this past tax season, and although the IRS has implemented the IRS Identity Theft Program, there is no quick and easy solution to overcome this unfortunate circumstance.

While there is no guaranteed solution to avoiding identity theft and tax fraud, there are certain precautions to take to prevent becoming victimized:

Safeguard personal information

Monitor credit report

File early

Respond immediately to IRS notices

Contact:
Aubrey Swanson
Kaufman, Rossin & Co
2699 South Bayshore Drive
Miami, FL 33133
3056466127