Your taxes may not be due until April 15th, but there are certainly benefits to filing early. One of them being greater protection against tax fraud and identity theft.
According to an estimate by the IRS, they paid over 5 billion dollars in fraudulent identity theft in 2013.
Basically, that means criminals use your name and Social Security number to file a false return and get your big whopper of a return in their pocket instead of yours. Obviously, this can’t be done if your taxes have already been filed so filing early is the easiest way to prevent this from happening to you.
Not expecting a return this year? You’re still at risk for identity theft. If a criminal gets ahold of your Social Security number, they can give it to an employer to avoid being taxed on wages, and the opposite effect can happen: you get stuck with the tax bill.
The risk of having your identity stolen during tax season is greater than the rest of the year, but still not something to lose sleep over. The IRS is constantly working to stop and prevent as many false returns as possible and they’re getting better and better at catching those sneaky little criminals before disaster strikes.
A new regulation put into place in the 2014 filing season is that only three refunds can be deposited into a single bank account. They’re also providing taxpayers with personal identification numbers–in addition to the Social Security number they’re required to provide–to prove their identity when filing tax returns. The number of taxpayers requesting these PIN numbers is nearly doubling every year.
Filing your taxes early can prevent the identity theft catastrophe and we’ll even reward you with cool Vyde gear. Send your tax documents to us by February 28th and receive a $10 Amazon gift card and a trendy Vyde t-shirt.
FAQs about Filing Taxes Early to Protect Against Fraud and Identity Theft
1. Why should I file my taxes early? Filing taxes early offers greater protection against tax fraud and identity theft. Criminals may use your information to file false returns, but if you’ve already filed, it prevents them from doing so.
2. How does filing taxes early protect me from identity theft? By filing early, you reduce the risk of criminals using your Social Security number to file false returns and claim your refund. This proactive approach helps safeguard your identity and finances.
3. Am I still at risk for identity theft if I’m not expecting a tax return? Yes, even if you’re not expecting a refund, your Social Security number can still be used for fraudulent purposes. Criminals might use it to avoid taxes on wages, leaving you with unexpected tax bills.
4. How is the IRS combating tax fraud and identity theft? The IRS is actively implementing measures to prevent fraudulent returns. Initiatives include limiting the number of refunds to a single bank account and providing taxpayers with personal identification numbers for added security.
5. Are there any incentives for filing taxes early? Yes, some organizations offer incentives for early filers. For example, Vyde offers a $10 Amazon gift card and a trendy t-shirt for submitting tax documents by February 28th. Filing early not only protects against identity theft but also comes with rewards.
