The IRS 2015 Filing Fraud Report Is In! Was Your Tax Return Affected?

Remember the other week when we talked about the importance of knowing about tax fraud and protecting your identity during tax season (as well as all the others)? Well, the results for the 2015 filings are in, and the steps the IRS and taxpayers have taken to prevent tax identity fraud have had commendable results.

This report from the Treasury Inspector General for Tax Administration was issued last Thursday, based on how the IRS’s performed January 1 through mid-April, 2016. The final results of their analysis will be released in September.

The IRS confirms the interim report's findings: 31,578 fraudulent tax returns involving identity theft have been found as of Feb. 29, 2016 (the paper filing deadline). As of March 5, 20,224 of these fraudulent returns have been identified as prisoner tax returns, which are being held for screening (prisoners have a history of claiming bogus tax refunds).

On March 4, the IRS’s return total was approximately 67 million, 62.6 million (93.9%) e-filed and 4 million (6.1%) paper filed. Subsequently, the IRS has issued more than $160 billion in 53,5 million refunds.

The IRS took measures this tax season to catch fraudulent claims before processing (rather than during). State tax authorities are also working to combat identity theft and tax fraud; the state of New York alone stopped more than 239,000 suspicious refund claims, saving taxpayers roughly $400 million.

While it’s true that a majority of the fraudulent returns found this year were e-filed - only 741 of the returns pulled for screening were paper filed - this shouldn’t keep you from e-filing in the future. In fact, it’s easier for the IRS to detect fraudulent returns when you file electronically, which can help expedite the correction process.

You can decrease your risk of fraud by making sure to file with an IRS-authorized e-file provider, like ExpressIRSForms. We’ve taken extra measures to ensure your security and that your information is shared only with the IRS.

If you've got any questions for us, we’re here all year, not just during tax season. Give us a call Monday through Friday, 9:00 a.m. to 6:00 p.m. EDT at (704) 839-2270. Or send us a live chat during those hours through our website, www.ExpressIRSForms.com. And for all you night owls, we’ve got 24/7 e-mail support at support@ExpressIRSForms.com.

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Protect Your Tax Return from Theft and Fraud

When we think about tax season damages, we’re usually thinking about our wallets. Unfortunately, as some people may have already found out the hard way, paying any taxes owed can end up being the least of your worries during tax season.

Tax-Related Identity Theft
With so many individuals sending personal information to the IRS, whether by e-filing or paper filing, the identity thieves are coming out to play. Typically, tax-related identity theft occurs when someone uses your Social Security number to file a tax return, claiming a fraudulent refund. But it’s not just a matter of protecting that SSN (although you should definitely do that); April is prime time for phishing scams and fraud, and the IRS already has a list of known schemes scammers use to compromise your identity and tax return/refund.

These scams don’t just affect you: fraudulent returns are a hassle for the IRS as well. That’s why the prevention and detection of fraud is one of their highest priorities, and why they provide victim assistance. If you think you’ve been a victim of tax-related identity theft, check out this IRS article so you can begin taking steps to re-secure your identity.

How to Protect Yourself
The main thing to remember anytime you’re reporting personal information, whether it’s to the IRS, your doctor, or even when you’re shopping online, is always to remain vigilant against illegitimate sources. Just as you wouldn’t hand over all of your personal info to a stranger on the street, you don’t want to do so online either. So here are a few tips for keeping your identity secure when you e-file this year:

• If the IRS emails you, it isn’t the IRS. The official IRS will contact you if there are any issues with your return via snail mail. If you do get a suspicious email claiming to be the IRS, forward that email (without opening it, if you can) to phishing@irs.gov.
• If the IRS asks for your credit card information or PIN by email, text message, or over the phone, it isn’t the IRS. Most of the time, the IRS doesn’t even accept credit cards for payments, only checks or Electronic Funds Withdrawals.
• Avoid opening any links or attachments in emails you receive from unfamiliar sources and be wary of ones from known sources. Basically, don’t open anything sent to you in an email unless you’re 100% sure that it’s legitimate.
• When using a public Wi-Fi hotspot, avoid logging into anything with sensitive information because others using the network could hack into your credentials or data.
• Always logout of sensitive sites and services when you’re finished, don’t just close the webpage. Additionally, while it may be convenient to have your browser remember your login credentials, this also makes it easy for hackers to enter your account.
• When handling sensitive information, don’t use the same computer your kids use. Many phishing scams are targeted at kid-oriented sites and services, so it’s much more likely the computer they’re playing on has been compromised in some way.
• Take extra security measures: it’s always better to be over-protected than to risk exposing your identity online.
• Use strong, unique passwords, and if you think you might forget them, store them in a safe place away from your computer. 
• And before you start entering any sensitive data, check for the padlock icon in front of HTTPS (instead of HTTP) in your web address bar. This indicates the site you’re using is secure and encrypted, making your information safer.
• Limit your exposure to threats with security tools like antivirus software, and, above all, be skeptical. As it’s been proven time and time again, if something seems too good to be true, it probably is.

We’re five days away from the personal income tax deadline (April 18 this year), so if you’re last minute e-filing, ensure that your identity is still safe by not rushing through your security checks. If you’d like more time to make sure you can get everything filed safely, you can e-file a personal extension Form 4868 (securely!) through our sister site, www.ExpressExtension.com.

Questions for ExpressIRSForms? You can give us a call Monday through Friday, 9:00 a.m. to 6:00 p.m., at (704) 839-2270, or send us an email anytime at support@ExpressIRSForms.com.

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