Friday, July 15, 2016

It seems that barely a week goes by without the IRS warning us of a new tax scam. If you pile them up together, it becomes rather frightening.
But I am here to try to spin this in a more positive direction (and it isn’t even that much of a spin).
First, realize that the high number of warnings being released means that people are aware of them and actively are trying to shut them down. For the extra curious, take a peek at the IRS’ news releases and see how many headlines concern security, data, scams, etc. Although I realize this easily sets up humorous retorts, it shows that the government is doing something, and maybe a lot of things.
There was even a Security Summit at the end of the last month, where tax agencies gathered with private-sector interests to make sure they do not remain complacent and continue to stay on top of security issues. If you curious ones want to delve deeper, read the report on it here.
This will not be the tone given with most of these stories, though, for fear makes better headlines. Taxes feel so mysterious to most people that is easy to tap into a sense of danger when talking about them. Paying taxes already involves money being sent somewhere unknown, taken by an entity with which we rarely have any interaction and the benefits of that relationship are never immediately apparent. At the same time, we know there can be stiff discipline for not fulfilling our end of the relationship.
Losing money and potential penalties? Those are the stories you want to know about. The government taking steps to keep your money safe? Then it is just doing what its job, no need to discuss.
As the do-it-yourself tax business continues to grow, stories of security concerns are destined to multiply with it. Those of us who work in the tax-preparation business have rules that we need to follow to ensure that our clients’ information remains safe. The more that tax work happens in more (less secure) places, however, the more chances there are for more criminals to take advantage of it.
So although I believe there is reason for calm when it comes to this area, it is not something that should simply be ignored. My biggest piece of advice when it comes to this – and it can apply to every avenue of life – is be mindful.
If you get involved in any situation that does not feel legitimate, chances are that it is not. If by some chance you are ever having a real interaction with an actual IRS agent, you are not going to make the situation worse by taking the time to confirm credentials. Call it an extra layer of security.
And that leads to the second important rule to remember. The first interaction with the IRS in any official capacity will never be a phone call, but through official correspondence sent through the mail.

Now for the more self-serving bit, as I remind you that working with a tax professional can be an even stronger layer of security. We are already abiding by those previously mentioned rules established to keep your information safe. And if you ever do receive some of that official correspondence from the government, wouldn’t you already rather have someone already on your side and not be going at it alone?

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