With fraud on the rise, experts urge taxpayers to file their tax returns early
If you've been debating whether to file your taxes early this year, tax experts say there are now several reasons that might be a good idea.
If you've been debating whether to file your taxes early this year, tax experts say there are now several reasons that might be a good idea.
The biggest one is the rise in tax-related identity fraud. Kelley Long, a certified financial planner and certified public accountant, said the odds that a bad actor will gain access to your Social Security number have seemed to increase alongside the growing number of high-profile data breaches.
"It’s safe to assume your Social Security number is in the hands of someone you don’t want to have it," Long said. "Whether you’ll be a victim is kind of up to chance."
Anjali Jariwala, who is also a certified financial planner, a public accountant and the founder of FIT Advisors in Torrance, California, said fraudsters have extra incentive to submit fraudulent tax returns as quickly as they can. As a result, legitimate filers could be "running against the clock" to file valid returns.
Filing earlier, Jariwala said, "minimizes the chances of someone else filing a return on your behalf."
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