As tax season approaches, many individuals face the age-old question: to file early or not to file early? While some might feel inclined to procrastinate, experts unanimously agree that there are compelling reasons to submit your tax return without delay. Among them, the prevention of tax-related identity theft stands out as a critical concern.
A recent survey conducted by IPX1031 revealed that nearly one-third of Americans tend to delay their tax filings. This procrastination not only increases stress but can also expose taxpayers to the risk of identity theft. Tax attorney Adam Brewer strongly advocates for prompt returns, emphasizing that there are no benefits to waiting. Rather, the sooner you submit your documents, the safer you become from potential scams lurking in the shadows.
Tax-related identity theft has escalated into a serious dilemma. Identity thieves often use stolen Social Security numbers to file fraudulent returns, leading to significant complications for victims. According to Erin Collins, the National Taxpayer Advocate, identity theft cases are not merely anecdotal. The backlog for resolving these cases has surged, with processing times now averaging over 22 months. This prolonged timeline can severely hinder legitimate taxpayers from receiving their rightful refunds.
As of February 2024, the IRS confirmed over 15,600 instances of identity theft detected that year, a significant increase from the previous season. This alarming upward trend highlights the necessity for early filings, as swift action may prevent your information from falling into the wrong hands.
Filing early can help stave off identity theft, but it doesn’t absolve taxpayers from the responsibility of submitting an accurate return. While many individuals may receive a majority of their tax documents as early as January, others won’t see crucial forms until later in February or even March. Patience and diligence are necessary to ensure that all the required paperwork is in order.
Experts advise taking the time to verify essential details such as names, Social Security numbers, and banking information before submitting your return. Tom O’Saben, an enrolled agent, highlights the importance of careful examination, suggesting that taxpayers should “measure twice and cut once.” This preparation not only aids in thwarting identity theft but also prevents unnecessary processing delays.
The recent round of layoffs within the IRS raises concerns about the quality of taxpayer services. With thousands of personnel reductions, there is speculation that the efficiency of service may be compromised. However, experts remain optimistic that as long as returns are filed accurately and via electronic means, taxpayers should not experience significant delays. Generally, electronic filings are processed by the IRS within three weeks, barring any complications or system errors.
In an environment where service quality might fluctuate, it is crucial that taxpayers stay informed and proactive about their filings. Utilizing direct deposit options for refunds can further expedite the return process and minimize the likelihood of complications arising from service disruptions.
As the tax season unfolds, the dual threats of procrastination and identity theft loom large over American taxpayers. Navigating this landscape demands both prompt action and meticulous care. By filing early, individuals not only protect themselves from the pervasive threat of identity theft but can also enhance their chances of a timely refund.
This tax season presents a unique opportunity for taxpayers to take control, armed with knowledge and a proactive approach. Whether your goal is to secure a refund or stave off the specter of fraud, remember: early and accurate tax filing is essential for a smooth and secure tax experience.
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