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Tax identity theft remains a ‘serious problem’
Financial experts strongly recommend submitting your tax return early to steer clear of tax identity theft. Filing ahead of time prevents thieves from fraudulently using your Social Security number to claim your return, as noted by Brewer.
Tax-related identity theft persists as a significant issue, as many victims endure processing and refund delays, according to National Taxpayer Advocate Erin Collins in her January report to Congress.
By the close of fiscal year 2024, the average time needed to resolve cases for identity theft victims stretched beyond 22 months, climbing from 19 months the prior year, Collins highlighted.
In the 2024 filing period, the IRS reported over 15,600 identity theft returns as of February 29, 2024, a rise from approximately 12,600 in 2023, revealed an April 30 Treasury report.
‘Measure twice, cut once’
Whether your motivation for filing early is a speedy refund or safeguarding against identity theft, submitting a complete and accurate return is crucial to avoid setbacks, experts advise.
Many tax documents arrive in January, but others could be delayed until mid-February, March, or later, according to the American Institute of Certified Public Accountants.
When you’ve collected all necessary documents, refrain from hastily clicking ‘send,’ recommended Tom O’Saben, enrolled agent and director of tax content and government relations at the National Association of Tax Professionals.
Always meticulously check key information, such as your name, Social Security number, banking details, and other filing data. To ensure return precision, practice the principle of “measure twice, cut once,” O’Saben added.
IRS layoffs could impact service
Recent IRS layoffs have raised concerns among experts about potential disruptions in taxpayer service.
Nevertheless, as long as you file a precise return electronically and opt for direct deposit, your refund should be processed smoothly, O’Saben reassured.
Generally, the IRS processes e-filed returns within 21 days. However, any necessary corrections or additional reviews might prolong this period, as per the agency’s statements.
Barring any systemic failures, “I would expect operations to proceed as usual,” O’Saben stated. “Meeting the IRS’s claimed timelines shouldn’t present issues.”
