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guest - June 6th, 2009 12:14 AM

I heard from a friend of mine that there is such a thing as IRS fraud. Is that true? [br]

guest - June 6th, 2009 12:31 AM

Yes, unfortunately IRS fraud is happening. The IRS is warning taxpayers about such a fraud. IRS fraud occurs when a tax payer pays a tax preparer to do his/her tax return. The tax preparer then  prepares and files the return fraudulently. When IRS fraud occurs, the tax preparer will claim inflated personal or
business expenses, declare false deductions, go for credits not allowed, or claim excessive
exemptions. Preparers have been known to alter income  that was reported late. This way they can claim fraudulent tax credits. [br]In situations like this, the tax payer may not even be aware of the fraud. He may simply drop off all his tax papers, receipts, and everything else needed to prepare the tax return, and leave it up to the tax preparer to handle the rest. The only problem is the tax preparer is a fraud, and thusly handles everything from an illegal standpoint. [br]The problem with this type of fraud is that when the IRS sees the return, they go after the tax payer not the preparer. In turn the tax payer is now faced with the difficult task of paying any back taxes owed as well as penalties and interest, as well as possible criminal prosecution.When it is tax time, you would do well to find a reputable tax preparer who has done it for years. This way you know you are getting a reliable person who is honest and trustworthy. [br]

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Identity theft comes in many forms.

A person’s identity can be 'borrowed' for the purpose of creating fictional credit cards or a person’s entire identity can be usurped to the point where they can have difficulty proving that they really are who they claim to be.

Up to 18% of identity theft victims take as long as four years to realize that their identity has been stolen.

There are many ways to protect your personal identity and many steps you can take to prevent your identity from being stolen:

*Never give out unnecessary personal information
*Never provide bank details or social security numbers over the Internet
*Always remain aware of who is standing behind you when you type in your personal credit codes at ATM machines and at supermarket checkout swipe machines.