Claims that TurboTax Fraud May also Affect Federal Returns

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Now that the tax season is here, the fears about TurboTax fraud is more punctuated than ever before. Taxpayers were shocked when they heard about TurboTax suspending state tax filings over fraud concerns. Imagine getting the news that someone else filed your tax returns and claimed your hefty tax refund. Fortunately, this problem only affected the state filings, not federal taxes.

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Well, this has changed. The details may be sketchy, but the FBI is now investigating claims that federal tax returns may also be affected by this fraud, putting your tax refund in jeopardy. The bureau interviewed taxpayers who claimed that IRS data was compromised, leaving room for fraudulent activities.

Imagine getting a message from the IRS acknowledging receipt of your federal returns even before you do your taxes. Given that all tax filings are done electronically, fraud has become a big threat.

While TurboTax 2015 free version allows taxpayers to make free tax filings, a rival, H&R Block, took advantage of the fraud cases surrounding TurboTax to attract taxpayers who did not want to fall victim to identity theft, among other types of fraudulent activities.

However, it is important to note that no system is perfect, especially when you consider the fact that both the IRS and most states had already put in place sophisticated systems to detect and help prevent theft.

All You Need To Know About Dealing With Tax Liability

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Do not let tax liability force you to pay more than your fair share of taxes. The IRS has been providing special reliefs to people who have not been able to meet their tax obligations for the last few years.

The tax revenue authority body through its “Fresh Start” initiative is taking target at small business owners and the unemployed to meet revenue collection targets set previously.

According to Doug Shulman, IRS Commissioner, the agency has an obligation to work with struggling taxpayers in order to find a workable solution for both parties.

Every taxpayer should know that failing to file returns or to pay taxes on time will attract penalties which will increase their tax liability.

» Failure to file on time will result in a penalty of five percent per month of the unpaid taxes until the amount is fully settled.

» Failure to pay taxes will lead to a penalty of half of 1 percent of the unpaid taxes every month.

The good news is that the agency is giving a half-year grace period to some self-employed people and eligible unemployed people. During this period, these groups of taxpayers will not incur penalties for late payment or failure to file returns. However, taxpayers who fall into these two categories will have to fill out the IRS Form 4868 to ask for an extension.

Under the Fresh Start initiative, eligible taxpayers will have up to 15th October to pay their taxes. Self-employed individuals who have seen their income drop by more than 25 percent due to the economic crisis in 2011 can also qualify for this deadline extension.

TurboTax Free Federal Editon

With TurboTax Online you are guaranteed to get your biggest tax refund possible. And it’s not too late to complete and file your 2008 taxes. Start you return today with the #1 name in online tax preparation, TurboTax.

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Free Federal Edition

TurboTax’s Free Federal Edition has everything you need to complete a 1040EZ return. And free tax filing comes with your free return preparation. Plus state tax returns for as little as $30.95 when required. The process is easy and you’ll have your refund in as little as 8 days.

Simple Process

Completing your Federal Return is a … Read more at 2009 Taxes

With TurboTax Online you are guaranteed to get your biggest tax refund possible. And it’s not too late to complete and file your 2008 taxes. Start you return today with the #1 name in online tax preparation, TurboTax.

Tax Act

Free Federal Edition

TurboTax’s Free Federal Edition has everything you need to complete a 1040EZ return. And free tax filing comes with your free return preparation. Plus state tax returns for as little as $30.95 when required. The process is easy and you’ll have your refund in as little as 8 days.

Paying taxes is required for both citizens and...
Paying taxes is required for both citizens and non-citizens. (Photo credit: Wikipedia)

Simple Process

Completing your Federal Return is a simle process. TurboTax will ask you easy questions about your tax situation. Only the questions needed based on your already entered information will be required. The information is automatically used to complete your tax forms. Your refund is then searched for additional credits that can dramatically increase your refund. And finally, e-file your return with the IRS for free.

All For Free

Complete your Federal Tax Return and e-file all for free. Nothing else required. Start your return today with TurboTax, the leader in online tax preparation. Click Here

5 IRS Identity Theft Tips

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5 IRS Identity Theft Tips

There are a number of organizations with helpful resources if your identity has been stolen this tax season or you feel that your identity might be misused. And do you know what kinds of emails to expect from the IRS so you know that the communication is legitimate?

1. The IRS has a special office called the IRS Identity Protection Specialized Unit which can assist you if you feel your identity might be misused due to the loss of personal information. Contact them at 1-800-908-4490.

2. The IRS never initiates contact with taxpayers through email. … Read more at 2009 Taxes

Tax Act

5 IRS Identity Theft Tips

There are a number of organizations with helpful resources if your identity has been stolen this tax season or you feel that your identity might be misused. And do you know what kinds of emails to expect from the IRS so you know that the communication is legitimate?

1. The IRS has a special office called the IRS Identity Protection Specialized Unit which can assist you if you feel your identity might be misused due to the loss of personal information. Contact them at 1-800-908-4490.

2. The IRS never initiates contact with taxpayers through email. Therefore all email appearing to originate from the IRS are fraudulent unless in response to an inquiring that you began.

3. Visit IRS.gov for reporting scams and for reporting bogus  IRS web sites.

4. The Federal Trade Commission has similar identity theft resources and can be reached at 1-877-ID-THEFT.

5. OnGuardOnline.gov is another resource for online protections from the federal government and the technology industry.