Avoid Fraud by Filing Your Taxes Early

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Courtesy of 401kcalculator.org

Over the past couple of years, tax fraud and identity theft have been on the rise. We have tried to warn everyone when a new scam comes up.  We’ve covered many ways thieves have used to steal your money and/or your identity.  There have been phone calls demanding money, the IRS has been hacked into, and most recently fraudulent tax returns have been filed. There is a way you can minimize the likelihood of someone filing a fraudulent tax return in your name. File early.

How are thieves able to pull this off?

Employers are required to file W-2 forms to their employee and the IRS each year.  They must send the W-2 forms to the employees by January 31st but they don’t have to file them with the IRS until the end of February.  That means there is one month where a tax return can be filed before the IRS gets the forms, they have no way of verifying that there is going to be a W-2 form to match it.

So if a thief has stolen a taxpayer’s identity, they use the that person’s name and social security number to make fake W-2 forms and file a fake tax return so they can steal large refunds.  They start in January as soon as the IRS starts accepting tax returns.  If the taxpayer waits until after the end of February to file their return, their tax return will be rejected because the tax return has already been filed n their name and social security number.

To correct this, the real tax payer has to mail their tax return to the fraud division of the IRS.  They will receive a letter from the IRS and they must call the IRS to verify their identity.  Then they will receive a PIN that they must use to file for the next three years.  This process takes weeks sometimes months to complete which also delays refunds.

Again, the best way to avoid this particular scam, we suggest you file your tax return as early as possible.

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Soulence has Moved and Year-end Tax Reviews

HA0521 - Bedford staff and M1. A set of images  of HA staff in the Bedford office and new section of M1, north of junction 9. March 2010

Photo Courtesy of Photo Highways. View Terms and Conditions at http://www.photos.highways.gov.uk

If you haven’t heard, Soulence has moved locations. Our new address is 13961 S. Minuteman Drive, Suite 101. If you visited us at the previous office, then you shouldn’t have any problem finding us. We moved one building to the northeast and our entrance is now on the east side.

We have settled in well and really think that this was the right move to make. We have more space so that we can work more efficiently to bring you the service that you have come to expect from our employees.

Soulence is also currently conducting year-end tax reviews. If you are concerned about what your taxes may look like in the next year or if you just want to be prepared, a year-end tax review is a good way to go. We can look at everything that has happened for you and/or your business and decide if you need to make a purchase to help improve your taxes or if you simply need to pay into taxes.

We’ll work together to come up with a plan for next year’s taxes that will be best suited to you and/or or your company. If you have any questions or would like to schedule a year-end tax review, please contact us.