Identity Thieves May File And Receive Your Tax Return

Waiting until April to file your tax return may allow identity thieves to beat you to it.  These crooks file fake returns using stolen names and Social Security numbers, along with false wage information, generating large fraudulent refunds.

“Our cases have increased by about 650 percent since 2008,” says Nina Olson, the National Taxpayer Advocate, kind of the internal watchdog at the IRS. People go to her when they have a problem with their returns.

The IRS itself says the number of cases has doubled each year in recent years. And a lot of the fraud is coming out of South Florida.

It catches on like fire. It spreads like a virus. Friends tell their friends,” says Wifredo Ferrer, U.S. attorney for the Southern District of Florida.

He calls this crime an epidemic. Fraudsters come from all walks of life: hospital workers, former Marines, white collar professionals and former gang members who have switched from street violence to tax fraud.

Read entire article at NPR.org.

Video Tips from the IRS

If you are a victim of this type of identity theft, contact your Local Taxpayer Advocate.

If you are still not able to resolve your issue, a lawyer  may be able to assist you.  The Lawyer Referral Service of the New Hampshire Bar Association can refer you to attorneys who are skilled at handling identity theft legal issues.  Call 603-229-0002 or request a referral online.

For other tax related matters, contact the Low-Income Taxpayer Project of the New Hampshire Bar Association.

 

 

 

 

How Long Should Financial Documents Be Kept?

Fearing an IRS audit, people have been known to keep every shred of  paper, going back decades.  Professional organizer, Regina Leeds says that while there are financial documents you should keep for life, most only need to be kept for three years or less.

Safe to Shred
Unless it shows proof of a deductible expense, many documents and receipts can be shredded monthly or annually, says Leeds. For entrepreneurs, these include:

  • ATM receipts and deposit slips after they’ve been reconciled with your bank statement
  • Monthly and quarterly bank statements if year-end statements are received

Keep for Three Years
Material that supports tax returns should be saved for three years. Leeds says this might include:

  • Income-related documents, such as invoices, cash register tapes, credit card charge slips, bank deposit slips, 1099s and W2s
  • Proof of deductible purchases and expenses, such as receipts, invoices, cancelled checks, mileage logs, and credit card slips or statements
  • Receipts for charitable contributions

As businesses become more paperless, receipts and statements are often delivered online. Some information is available for a limited time, however. Make sure you check with your account holder to understand its policy, and save or print documents that might be needed in case of an audit.

While three years is standard, according to the IRS, it can perform an audit up to six years after taxes are filed if a “substantial error” is suspected. In the case of fraud, there is no limitation on an audit. Leeds says if you are worried about being audited beyond the three-year limit, you should hold your documentation longer.

Read the rest of the article by Stephanie Vozza at Entrepreneur.com.

If the IRS has contacted you regarding unpaid taxes, the Lawyer Referral Service of the New Hampshire Bar Association can help with a referral to an attorney who specifically handles IRS tax matters.  Call 603-229-0002 or request an online referral.  Assistance might also be found through the Low Income Taxpayer Project.

Jar of money labeled Taxes.

File Your Taxes Before Identity Thieves Do

Elisabeth Leamy, ABC NEWS Consumer Correspondent reports:

Tax day is a week away and I hope you’ve already filed, because if you haven’t, it’s quite possible con artists have filed FOR you, using your Social Security number to claim refunds for themselves. Tax-related identity theft has doubled over the past two years and now makes up the single largest category of the crime. In 2009, only 12 percent of identity theft was related to taxes. Now tax identity theft makes up 24 percent of all ID theft crimes reported to the Federal Trade Commission. Crooks have found that Uncle Sam is a pretty easy target and they can scoop up tax refunds using YOUR good name.

Here’s the ugly part: if a crook files a tax return using your name and SSN before you file your own return, you’ll be stuck having to prove YOU really are yourself and THEY really are the criminals. There’s also another twist in which criminals use other people’s SSNs when they get jobs. The income from that job then shows up as yours, and when you don’t account for it on your tax return, the IRS may come after you. The third twist is when crooks steal the SSN of a child or elderly dependent of yours, and then you have to prove that person really belongs on your tax return. Not only will your refund be delayed, it’s possible you may end up spending money to clear your name.

Read the entire story.

If your identity is ever stolen, hiring an experienced attorney may be the quickest route to recovering your good name.   The Lawyer Referral Service of the NH Bar Association can help with a referral to an attorney who specifically handles identity theft issues.  Call 603-229-0002 or request an online referral.

Taxes Prepared and E-Filed for Free in NH

Get your taxes prepared and e-filed for free in NH by IRS-certified volunteer tax preparers.

  • Do you have income under $58,000?  If so, you can get your taxes prepared for free!
  • Get up to $5,751 back from the IRS if you qualify for earned income tax credit.
  • Get your refund in less than 10 days with direct deposit!

PORTSMOUTH, NH AREA – Northeast Credit Union. Please call (603) 422-9804 for an appointment.

ROCHESTER, NH AREA – Walk-ins welcomed – Please call (603) 430-4934 for more information.

For additional locations including free AARP TaxAide sites call 2-1-1.

Have you received a letter from the IRS saying you owe more money than you thought you did?  A consultation with a competent tax attorney can make all the difference!  Call the Lawyer Referral Service today at 603-229-0002 or request an online referral.