A new year for many is a time for a fresh start, but it also is the start of the tax season.
While the actual due date for taxes seems far away, starting early can save you from headaches down the road, according to the Better Business Bureau.
Scams also are common during tax season. The No. 1 scam to watch out for is identity theft. This happens when a scammer uses a person’s Social Security number and other personal information to file a tax return in their name in order to collect their refund. Consumers often don’t realize they’re victims until they get a written notice from the IRS saying someone else had already filed a return.
“The easiest way to avoid a tax scam is to file as early as possible, so the scammers don’t have a chance to use your information and file before you do,” President and CEO of the Better Business Bureau Serving Western Michigan Lisa Frohnapfel said. “It is always important to protect your personal information; however, filing early can help protect your tax return.”
Another popular scam involves people impersonating the IRS. The scammers call, email or text claiming to be from the IRS. They pressure a person to provide personal information or a payment. They may claim a person owes money and must pay right away by prepaid debit card or wire transfer. If a person doesn’t comply, the scammer…
