Tax Effect Of The Equifax Breach

Every year, tax experts and the IRS have cautioned us to file our tax returns early. Not only does it help to get any refunds back to us quicker, there has been a history in recent years of tax identity fraud — thieves filing returns in our names and getting our refunds. Basically, file before the bad guy files. Whoever gets there first gets the refund. 

While this has been true for several years, it is even more applicable this year, because of the Equifax breach last year. Remember that at least half of the adult population in the US have has very personal data stolen: names, dates of birth, addresses, Social Security Numbers — more than enough to create fake W-2’s and file false returns. 

If you have been following the Equifax breach in the news, you may have wondered why so few cases of fraud have shown up yet. Quite likely, this tax filing may be a key reason the thieves have been sitting on the data. 

Whether you use a tax prep service or do it yourself, get going as soon as you can. The experts say the safest way is to file online, but make sure your PC has updated antivirus and patches, and strong passwords. If you receive emails or pop ups claiming to be from the IRS or from your tax prep site, make very sure it is legitimate before you click on any links. Know that the IRS will not communicate with you in that manner, nor ask you to click on a link to log in. 

One little advertisement: an IDShield membership in force now protects you should you become a victim. A legal plan membership in force now gives you legal support, including IRS audit representation, on your 2017 tax return. Learn about these plans or enroll at my site http://Legal.nscky.com.
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