Posted on

How to Prevent Tax Identity Theft

Last year tax identity theft affected 1.1 million taxpayers. Use these tips to prevent someone from stealing your identity and filing a fraudulent return

Every year millions of taxpayers look forward to tax season as a nice fat tax refund is waiting to enter their bank accounts.

But for an increasingly large group of tax filers, tax season can be a scary time. Every year, more and more people become the victims of tax identity theft – their names and Social Security numbers were stolen and fraudulent returns are filed under their names.

Not only do criminals now possess these unfortunate filers’ personal information – with which they can do any number of dastardly things – but these people also have their tax returns rejected by the IRS because every Social Security number can only be used once. They then have to print out their return out, fill out a lot of extra paperwork, and mail it all to the IRS, which slows the process down considerably. Many have to wait months, even upwards of a year, before they get their refunds.

In 2008, there were 51,700 cases of identity theft-related tax fraud. In 2011, that number was over 1.1 million.

So even if you’ve never had your identity stolen, you still need to be vigilant about taking preventive measures. Don’t think it can’t happen to you. Following these steps will save you a lot of hassle and heartache: Continue reading “How to Prevent Tax Identity Theft”

Posted on

IRS Rejection Codes

If the IRS rejects your tax return, these codes will explain what went wrong

Getting your tax return rejected by the IRS can mark the outset of a serious freak-out session. Thankfully the process of correcting and re-submitting your return often turns out to be fairly painless.

When you attempt to e-file a return and it gets rejected, the IRS will send you a code which tells you exactly what’s wrong with your return so you can fix it and e-file it again.

This is just another of the many reasons why it pays to e-file. If there’s a problem with your return, you can correct and re-submit your return instantaneously not only ensuring accuracy but making sure that you get your refund as soon as possible.

If your return is rejected, find your rejection code either on the short list of common rejections below or on the complete list at the bottom of the page. Then correct the error on your return and re-submit it to the IRS. Continue reading “IRS Rejection Codes”

Posted on

What Are Taxpayer Advocates and When Should You Call Them?

Taxpayer advocates can help you resolve problems with the IRS, especially if they are causing you financial hardship

If you’ve ever had a tax problem, someone may have suggested that you contact a taxpayer advocate. But who are these taxpayer advocates and what exactly do they do?

The Taxpayer Advocate Service (TAS) is an independent organization inside the IRS. They serve as your voice inside the sometimes opaque IRS. They’re free, so you have nothing to lose in contacting them. Oftentimes with tax issues, the worst thing you can do is nothing at all.

When you should contact the TAS?

When should you contact the Taxpayer Advocate Service?

  • If you are experiencing economic hardship, for example if you are unable to afford basic necessities like housing, transportation, and food.
  • If you are unable to resolve a problem with the IRS by speaking to a normal representative (1-800-829-1040).
  • If you believe there’s a problem with an IRS system or procedure that needs to be corrected or improved. Continue reading “What Are Taxpayer Advocates and When Should You Call Them?”