Filing taxes may not be your favorite activity, but doing them right is imperative, whether you're getting a refund or writing a check for additional tax.
Every year, Better Business Bureau (BBB) fields complaints from taxpayers about preparers who didn't prepare taxes properly or who weren't around when the taxpayer got a notice from the Internal Revenue Service (IRS) about problems with the return. Some tax offices vanish after the filing deadline on April 15.
Even worse, identity theft associated with tax returns has become a huge problem. The Federal Trade Commission reported earlier this year that tax identity theft had become the largest category of identity theft reported to the agency. Also, tax imposter scams - where someone calls to say there's a problem with your tax return - totaled 54,690 last year, about half of all tax identity complaints.
So what's a taxpayer to do? One of the most important things is to make sure you check out the person who does your taxes thoroughly. BBB provides business reviews on its website for dozens of tax professionals, including accountants, lawyers and enrolled agents. The reviews give you background on a business and tell you about any complaints filed against a business and how they were resolved.
Once a preparer has done your return, check it over for errors, and make sure you and the preparer both sign it. Failure to sign a return can delay your refund or raise other questions with the IRS.
Be suspicious of any email or phone call you get that says there's a problem with your return or that purports to be from the IRS. The IRS uses regular mail to communicate with taxpayers, not email or phone calls. Most of the suspicious emails are "phishing" - attempts to trick you into giving up sensitive information that a thief can use to commit identity theft.
The IRS also has noticed an uptick in people using someone else's Social Security number to file returns before the legitimate owner of that number files the return. You could be a victim of this scheme if the IRS says you had income from an employer you don't recognize.
If the IRS notifies you of a problem, don't delay. Respond right away. IRS specialists will work with you to solve it and help you protect yourself from ID theft in the future.
Mike Harrison is Better Business Bureau's Mid-Missouri regional manager. You can contact him at [email protected] or by calling 573-886-8965.