Substantial Drop in Tax Return Fraud

CROMWELL, Conn. (WTNH) – According to the CT Better Business Bureau, tax return fraud has substantially dropped for 2016.

The BBB credits the hard work of law enforcement and the Internal Revenue Service (IRS) for this improvement in numbers.

The IRS says that the number of tax return fraud victims is now at 376,000 which is a 46% drop from 2015. The agency also was able to stop one million fraudulent tax returns from being issued in 2016. That action saved the state almost $6.6 billion.

“It took considerable work to make a significant dent in the number of tax fraud victims, but clearly the efforts are paying off in a big way, and that is very good news for consumers,” according to Connecticut better Business spokesman Howard Schwartz.  “After years of fear on the part of taxpayers, especially those who need their refund to survive, this is very positive news,”

Income tax return fraud is the beginning stage of identity left. Scammers gather peoples’ personal information from a variety of sources to file a tax return and claim your refund. Victims usually do not discover what has happened until after they file a legitimate return and are told it already has been processed.

If you have yet to file your income tax return, the CT BBB published tips to help you find and evaluate a tax preparation service or professional:

  • Verify qualifications – Check the preparer’s credentials. Attorneys, CPAs and enrolled agents can represent taxpayers before the IRS in all matters, including audits, collection and appeals.  Other tax return preparers may only represent taxpayers for audits of returns they actually prepared.
  • Ask about additional service fees – This includes what happens if your return is more complex than anticipated, so ask about what that would cost.
  • Carefully review the completed tax return – Make sure it is signed both by you and the preparer and that they put their Preparer Tax Identification Number PTIN on the return as well.
  • Get contact information – In case of any sort of problem with your return, you want to be able to reach the preparer not just for the next month or two but for three, four or six months down the road.
  • Don’t wait too long – Get your tax return done as soon as possible, and sign up to get your refund deposited directly to your bank account.
  • Tax professionals have differing levels of skills, education and expertise – If your return is simple, national income tax preparation franchise preparers do a great job.  If your income tax return is complex, you might want to consider using an account or tax specialist.
  • You can save money by preparing your tax return online with IRS eFile or software, or have a trusted friend or relative prepare your return.  The caveat, is that if there is a problem you will probably feel a lot more comfortable if an enrolled agent, tax lawyer or certified public accountant does your return, inasmuch as they can represent you in tax court if necessary.

You can check out or find a tax preparation professional at BBB.org

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