4 Steps to Avoid Tax ID Fraud This Year
NEW YORK (TheStreet) -- Tax identity fraud figures seem to grow worse for taxpayers every year.
According to AllClearID.com, 1.2 million U.S. taxpayers reported tax-based identity theft cases to law enforcement authorities in 2012, and that rose to 1.6 million for just the first half of 2013.
According to a November report by the Treasury inspector general for tax administration, the IRS paid as much as $3.6 billion in fraudulent refunds to identity thieves in 2012, with more than 1.6 million taxpayers becoming victims of fraud in some form or another.
Whether they file their own returns or work with a tax professional, people need to be aware of potential tax scams and identity theft, says Rip Mason, chief executive at LegalShield, a legal services and ID theft protection firm.
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