We are nearing the end of tax season and many people have already received their tax refund. And some are not so lucky. Instead, they have learned someone else got there first and has their money.
Tax fraud occurs when an individual or business willfully and intentionally falsifies information on a tax return in order to limit the amount of tax liability, or to boost a tax refund. But it doesn’t stop there.
Did you know identity theft can lead to tax fraud? This occurs when someone steals your social security number to file a tax return claiming a refund…a fraudulent refund.
In a mortgage transaction, lenders pull transcripts from the IRS to confirm the tax returns you supplied with your documentation.
Just a couple of years ago during a typical mortgage transaction, my team was able to expose identity theft tax fraud committed against one of my clients. Luckily the theft had occurred just a couple of months prior to his transaction. He was able address it before more damage occurred.
MGIC, an industry resource and provider of mortgage insurance created this info graphic to help illustrate some of the common ways tax fraud occurs, how to protect yourself from tax fraud, and where you can go for help.
Identity theft tax fraud is no fun. Be armed, protect yourself, your identity and your tax refund.