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It is extremely important, at this time of year, that the individuals who are filing various tax returns take the appropriate steps to ensure they are protecting their private information and working with legitimate tax preparation companies.  It’s very important to beware of income tax scams.

The IRS has reported a 400 percent surge in suspected tax-related phishing and malware scams during the first six weeks of 2016, and the IRS has renewed its warning to consumers not to respond to unsolicited emails or text messages seeking personal information.

The American Institute of Certified Public Accountants has also issued a statement informing taxpayers to be vigilant and proactive in protecting their personal data (i.e. Social Security and credit card numbers) that scammer will utilize to steal tax refunds and commit other crimes.

It is then up to each individual to act responsibly to safeguard his or her tax information, and choose only to share that information with reputable tax preparers or tax return software.  Thus, it is important to choose wisely and carefully what entity will assist you this year in preparation of your tax return documents.

Last year, the IRS launched an online directory that taxpayers can search to verify federal tax return preparers’ credentials and qualifications. That database, plus information about choosing a tax professional, is available at irs.treasury.gov/rpo/rpo.jsf.

Typically, when choosing tax preparation software, the “rule of thumb” is to generally utilize the large named companies as the safest route to take.

Additionally, it is highly advisable to complete an Internet search using a tax software company’s or preparer’s name along with “fraud” and “complaints” to help identify problems.  A person can also review data supplied by state licensing boards and the Better Business Bureau concerning complaints issued about tax preparers.

There is no full-proof way to stop identity theft, as scammers are constantly developing new ways to steal information.  However, identity theft can be prevented by following some general rules such as never providing your birth date, Social Security number, email, or similar personal or financial data unless you are required to, and never post sensitive data on social media sites.

For more information about tax scams visit www.irs.gov.

Keeping you informed are the trusted attorneys from Browning & Meyer Co., LPA.  Please contact our law office with any questions.