(WTNH) — TurboTax will temporarily stop processing state tax returns, following growing reports of suspicious activity in several states.
The Better Business Bureau of Connecticut says there are many types of tax fraud active right now, and the problem is rampant. They include people who call, claiming to be with the IRS, saying you owe them money and you’ll be arrested if you don’t pay.
“They may quote a badge number, they may even have the last four of your social security, because this is a crime of identity theft,” said the Better Business Bureau’s Howard Schwartz.
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Income tax identity theft is another common occurrence during tax season. It’s when someone has accessed your personal information and files taxes under your name in order to receive the return. If this happens to you, contact the IRS immediately, then credit reporting companies, as that will be one of the first places you’ll see any sort of suspicious activity.
“Contact the credit reporting companies one at a time, as well as your financial institutions to let them know that you believe your identity has been compromised,” said Schwartz.
With 60-percent of Americans filing their taxes through a third party, it’s important to do your research and remain vigilant to be on guard against all types of possible fraud.
“Some of the things we should be looking out for when we select a tax preparer is somebody who says they can get you a larger return than anyone else, or someone who bases their fee on the percentage of your refund.”