Fight fraud and start preparing your taxes now

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Pam Atkinson, consumer economics educator for University of Illinois Extension

Pam Atkinson, consumer economics educator for University of Illinois Extension

The new year is here, and most of us would rather do anything but think about filing our income taxes. While tax returns are not due until April 15, Pam Atkinson, consumer economics educator for University of Illinois Extension-Livingston, McLean and Woodford unit urges you to start preparing now and file as early as humanly possible.

“There are many reasons to begin your income taxes before the end of the year,” said Atkinson. Some will save you money, and some will save you time and aggravation. “For example, making tax deductible contributions to charity or making additional contributions to your IRA’s could reduce the amount of taxes you owe. You will not know if you need to or are able to make these contributions until you put some rough numbers together.

“The biggest reason may be to make sure you get your refund before con artists file on your behalf stealing your identity and your money.”

The Internal Revenue Service stopped $24.2 billion of fraud in 2013, but failed to prevent another $5.8 billion that went to criminals, with some uncertainty over how much more went undetected, according to a study by the Government Accountability Office.

There was more fraud last year. No one seems immune from this sort of theft.

Note the IRS will not begin accepting returns until sometime in mid to late January, 2016. Furthermore, you most likely will not have received the 1099’s and W-2’s etc. necessary to file, but there is plenty you can do now to get ready to hit send as soon as possible.

Seven things to do now to prepare for income tax time

  1. Start pulling together your documents detailing income and deductions as well as adding up receipts early.
  2. Use the last pay stubs of the year to estimate your income and taxes paid.
  3. Consider getting a locking mailbox. Most identity thieves still get their information the old fashioned way- through garbage, recycling bins, and mailboxes.
  4. Consider purchasing tax software. If you file yourself you probably already have a favorite brand. Even if you have a tax preparer- using the software to collect and sort your information will make it easier for them to file your return fast and early.
  5. Make an early appointment with your tax preparer.
  6. Monitor incoming tax related documents like investment statements and W-2’s and report those that are slow in coming.
  7. File as early as possible.

All income tax thieves need is the name and social security number to create a phony W-2. Then they file a return on your behalf and have the refund deposited in their accounts. If that happens and you try to file later- your return will most likely be rejected, and then the “fun” begins.

The IRS has steps in place for people to begin the task of finding out about the fraudulent returns filed in your name. For more information, check out IRS publication Instructions for Requesting Copy of Fraudulent Returns.

For more information on how the IRS is working to protect from fraud go to www.IRS.gov and search for identity theft. Often people want to delay these tasks because of all the things to do during the holiday season. Atkinson says people don’t have to spend long sessions on these activities. “A little time here and there can go a long way towards being prepared,” she said.

 

For more information contact Pam Atkinson, Extension unit educator, Consumer Economics-Livingston, McLean and Woodford Unit at (309) 663-8306, or email pratkins@illinois.edu.

 

 

 

 

— Fight fraud and start preparing your taxes now —