Tax Related Identity Theft Essay

Your business faces penalties and fines if you file your tax return late. File for an extension if you need additional time to compile your data and file your taxes.

Furthermore, to minimize your federal tax liability, it is important to be prepared if the IRS decides to re-compute your personal income or the income at a

a high tax bill after filing your return, in addition to tax penalties for claiming

The first thing is, what identity theft is. Identity theft is a term that is used to refer to

Identity Theft means when a thief steals our valuable information for his benefit, for example, stealing our identity is an identity theft. Such acts may degrade your status.We may not know the victim of identity theft until we know it through misuse of personal information.

Once identity thieves have your personal information, they can empty your bank account, max out your credit cards, open new accounts, and in extreme cases, a thief might give your name to the police during an arrest (Federal Trade Commission, 2015).

Identity theft is serious. While some identity theft victims can resolve their problems quickly, others spend hundreds of dollars and many days repairing damage to their good name and credit record. Some consumers victimized by identity theft may lose out on job opportunities, or be denied loans for education, housing or cars because of negative information on their credit reports. In rare cases, they may even be arrested for crimes they did not

What is Identity Theft? Identity theft is when a thief gets enough of your personal information to pretend to be you and then does things in your name—like get a credit card, open a bank account, or get a cell phone in your name

Identity theft involves the unlawful taking of someone’s possessions for taking using the addresses and DOB without authorised access. Once someone else gets your information they are enabled to do many different things with your personal information. It usually happens when a hacker accesses a large amount of information about someone’s identity. A lot of common crimes which are usually got to do with identity theft are bank fraud and credit card fraud. Identity thieves can also do other stuff for example enter and exist countries using your personal information and cyber-crimes. Some consequences businesses and people face for identity are that you’ll be fined for sent to prison for long time.

The most common forms of this is a company that holds two different books, modified checks to raise deductions. This type of fraudulency is easy to see by placing them side by side and comparing the numbers with the computer coding or bank statements. The probability of being charged with committing tax fraud is zero to none, but it does happen.

3. Now get a copy of your credit report and review it carefully, and close all accounts that were fraudulently opened or used. File a police report. Finally file a complaint with the Federal Trade Commission. You can go to ftc.gov or call 1-877-ID-THEFT follow up in writing and send copies of the documents that support your claim.

Tax returns are really important for each and all the folks. One really must file

The best thing to do if a little extra time is needed past the April 18th deadline is to file for an extension using IRS Form 4868. This has to be done prior to the deadline though. And the maximum amount of time that is offered is just four more months. Those who are already late filing will have to have a San Diego CPA from our accounting firm file a special paper with the IRS on their behalf, which states what extenuating circumstances have caused them to be late. The CPA can also call the IRS directly to let them know that the filer has every intention to pay the taxes that they owe. This communication is crucial because it can help avoid criminal prosecution and extra fees.

As tax laws and regulations are always changing, to someone that hasn’t kept up to date with new laws and regulations tax filing can be puzzling. One financial misstep and you could accidently wipe out years of careful budgeting and planning. And this is not only for you, but also your family, and any employees or associates. Being a business owner puts a double burden on someone because so many financial futures are dependant on your judgments, endangering your employees as well. When making financial decisions, it is always best to confer with experts and specialists to make certain all is correct. With the help of National Tax Attorney you will never have to lose a moment of peace wondering if you made a mistake on your tax return.

The government announced a run down of the most widely recognized tax blunders. On that run down are calculation mistakes while deciding taxable salary, entering installments on the wrong line and basic math blunders. A mistake on your return can postpone any discount because of you. When you blunder and the slip-up brings about tax, intrigue, and fines collected from the date you recorded the taxes. While no tax proficient is impeccable, the odds of committing a straightforward error on a return are decreased when you utilize an expert tax benefit.