The Southbourne Tax Group: Straight Talk - Be aware of the 'Dirty Dozen' of tax scams

The Canton Regional and Greater West Virginia Better Business Bureau offers tips and advice for consumers to avoid fraudulent practices.

Today's topic: IRS warns of the "Dirty Dozen"

The concern: Every year, the IRS compiles their "Dirty Dozen," a list of common scams that can affect taxpayers at any time of the year, but strike more often during filing season as consumers finalize their tax returns.

How the scam works:

Phishing schemes Criminals pose as a person or organization the taxpayer trusts or recognizes. They may hack an email account and send mass emails under another person's name. They may pose as a bank, credit card company, tax software provider or government agency. Criminals go to great lengths to create websites that appear legitimate but contain phony log-in pages. These criminals hope victims will take the bait and provide money, passwords, Social Security numbers and other information that can lead to identity theft.

Business email compromise (BEC) / W-2 phishing scam Cybercriminals use spoofing techniques to disguise an email to make it appear as if it is from an organization executive. The email is sent to an employee in the payroll or human resources departments, requesting a list of all employees and their W-2s "for a quick review." But it's not real, and those who reply are sending employees' names, Social Security numbers and income information to scammers, who then file fraudulent returns for tax refunds.

Tax identity theft Tax-related identity theft involves scams with the intent to steal personal and financial data from taxpayers or data held by tax professionals. One such way is when a scammer uses a stolen Social Security number to file a fraudulent tax return and claiming the refund. It also happens when someone uses your SSN to earn wages, and sticks you with the tax bill.

Fake charities Groups masquerade as charitable organizations to attract donations from unsuspecting contributors. One type of abuse or fraud involves scams that occur in the wake of significant natural disasters. Scam artists impersonate charities to get money or private information from well-intentioned taxpayers. Scammers can use a variety of tactics; some operate bogus charities and contact people by telephone or email to solicit money or financial information. They may even directly contact disaster victims and claim to be working for or on behalf of the IRS to help the victims file casualty loss claims and get tax refunds.

Tips to avoid these scams:

File early. File your tax return as early as possible to avoid a scammer filing instead.

Be secure. Use a secure internet connection if you file electronically, or mail your tax return directly from the post office.

Know the IRS. The IRS will not contact you by email, text or social media. If the IRS needs information, it will contact you by mail.

Be aware of your credit. Check your credit report for free at annualcreditreport.com to make sure there are no unauthorized accounts.

Protect personal data. Don't routinely carry a Social Security card, and make sure tax records are secure. Treat personal information like cash; don't leave it lying around.

Know phishing. Learn to recognize and avoid phishing emails, threatening phone calls and texts from thieves posing as legitimate organizations such as a bank, credit card company and government organizations, including the IRS. Do not click on links or download attachments from unknown or suspicious emails.

Be informed. To see the remaining "Dirty Dozen" and find more tax-time tips, visit the IRS website.

The Southbourne Tax Group: Tips on having an efficient tax appointment

1. LOUIS, MO (KTVI)–Sandy Furuya with Wamhoff Financial Planning and Accounting provides tips to help you be ready for your tax appointment and make it a productive, stress-free experience.

What should I bring?

• As a general rule of thumb, it’s always best to bring too much than not enough. So if in doubt, bring it with you! This list includes:

1. Tax forms you`ve received from employers, vendors, or government authorities: w-2s, 1099s
2. Statements from your brokerage and investment accounts (many of these 1099s do not arrive until February or later, and many are not final)
3. Receipts and supporting materials for business-related expenses
4. Forms or receipts related to moving, childcare, education, medical expenses, home mortgage, etc.
5. Social security card for any new dependents
6. Mileage logs
7. Home office deductions
8. Any changes that will affect the future year
9. Any notices you’ve received from the government, including your IP pin if you’ve had identity theft
10. Voided check for direct deposit of your refund. This year, your tax professional must verify this information and sign off on it.

• If you’re working with a new tax firm, you can call ahead and discuss what they need. You’ll typically be asked to bring the prior two year’s returns and potentially other items.

Other things to know and do:

• Make a list ahead of time with questions you have for your tax professional. This helps to ensure a productive meeting, and helps you receive the most comprehensive tax advice.
• Many tax professionals have an organizer they can provide which will assist you in gathering your information. Ask for it and use it!
• Be aware that the IRS will be delaying refunds this year until mid-February for people claiming the earned income tax credit, additional child tax credit, or the american opportunity tax credit. In addition, your tax preparer will be required to complete a due diligence checklist form 8867 as required by the path act.
• There are new id and refund fraud safeguards put in place by the IRS and states which will cause additional review of tax returns.
• After filing, you can use ‘where`s my refund’ tool at IRS.gov, or the IRS2go mobile app to check on the status of your federal refund.

The Southbourne Tax Group: Ready to file your 2016 taxes?

The 2016 tax filing season has begun, with W-2s arriving in the mail and some confusion arising from news of a refund delay.

While most people will be minimally impacted by changes this year, one of the biggest additions is aimed at helping low-income families.

The California earned income tax credit is entering its second year. The credit applies to people who earn $6,717 or less with no children up to $14,161 with two or more children. To help you get the most out of your taxes, we asked Aaron Martinez, a tax expert with H&R Block since 1998, and Andrew Nelsen, a certified public accountant in Fountain Valley, for tips ahead of the April 18 filing deadline.

REFUND DELAY

Some who file early may be in for a surprise. Those claiming the EITC or a child tax credit – an estimated 30 million taxpayers – will have their refund held until Feb. 15.

“We’re telling everyone to file normally,” Martinez said. “They just have to wait a little bit longer to get their refund.”

The delay, created by the Protecting Americans From Tax Hikes (PATH) Act of 2015, is meant to prevent fraud.

“Those two credits are target credits for identity thieves and fraudsters. The IRS wants to make sure that the W-2s that are coming in are correct and that they have time to make sure there is no theft,” Martinez said.

The IRS estimates that as many as 26 percent of EITC claims may be paid erroneously in 2015. “Some of the errors are unintentional, caused by the complexity of the law, but some of the claims are intentional disregard of the law,” the agency said.

For people who need the refund sooner, H&R Block is offering a $1,250 refund advance, a no-interest loan that’s repaid when the refund is issued by the IRS.

WHAT's NEW

The personal exemption has been increased to $4,050. But that amount is phased out for taxpayers at higher income levels. Similarly, those with higher adjusted gross income might not be able to get the full value of their deductions.

The alternative minimum tax is still around, but the exemption has increased to $53,900 for single taxpayers, $83,000 for those married filing jointly and $41,900 for married filing separately.

People who have been issued an individual taxpayer identification number, or ITIN, instead of a Social Security number may have to renew it before filing their tax returns. The IRS says current ITINs will no longer be valid if they weren’t used at least once in the last three years or if the number was issued before 2013.

Make sure you have last year’s tax return handy when you prepare to file your taxes this year.

“Taxpayers who are changing tax software products this filing season will need their adjusted gross income from their 2015 tax return in order to file electronically,” the IRS said. “The electronic filing PIN is no longer an option.”

That, too, is part of the agency’s attempt to battle tax fraud and identity theft.

CLAIM ALL YOUR CREDITS

Martinez said there are a lot of deductions people forget to take. They include:

--Charitable contributions

--Mortgage interest, property taxes and mortgage insurance

--Employee expenses such as mileage and phone bills

--Education costs: Schools issue a tuition statement, form 1098-T, for eligible deductions

--Filing status: For example, a single mother with a child can file as head of household

--Caring for parents

--Even if you have a degree, the IRS offers a lifetime learning credit of up to $2,000 annually

--Delivery drivers, especially those working for Uber, Lyft and DoorDash, should keep track of miles, oil changes and vehicle repairs as business expenses

PATH ACT

“A big change this year is the PATH Act. This act made some tax changes permanent and made some expire,” Martinez said.

Under the act, the American Opportunity Education Tax Credit, which gives undergraduate students up to $2,500 in tax credits, and some other tax breaks were made permanent.

This is the last year for private mortgage insurance, mortgage debt forgiveness, a tuition and fees deduction, and non-business energy credits.

“Next year is the year that could really be topsy-turvy,” said Nelsen. “Not a whole lot changed this year.”

AVOID SCAMS

To prevent fraud, file your taxes as early as possible, Martinez urges.

The IRS will not ask for your credit card or send the sheriff to your house. Anyone threatening to do so is likely a scammer.

Anyone impersonating the IRS can be reported online at ftccomplaintassistant.gov or by calling 800-366-4484.

EXTENSIONS

Taxpayers who need more time to file can request an extension.

“Getting a filing extension avoids the late filing penalty, but it doesn’t avoid the late payment penalty,” said Barbara Weltman, a consultant and author of books on taxes, law and finance.

So the advice from tax experts: To avoid the late payment penalty, estimate the amount due and pay it before the April 18 deadline. But even with that, you won’t be able to avoid interest on payments made after the deadline.

AFFORDABLE CARE ACT

While Republicans seem committed to repealing the Affordable Care Act, it remains to be seen what might replace it.

In the meantime, people who do not have health insurance should be prepared to pay more this year as penalties for those without coverage have risen.

The penalty for not having insurance is $695 per uninsured adult or 2.5 percent of household income over the filing threshold – whichever is greater. In 2015, it was $325 per uninsured adult or 2 percent of household income.

Enrollees with insurance through the state’s health exchange, Covered California, have to file a 1095-A form with their taxes.

To help with the cost, there are 30 exemptions available for people who are uninsured, according to Martinez.

“It’s in its third year. The first year people didn’t really understand it,” Nelsen said. “The second year penalties really started kicking in, and people started to catch on, so I know it’s on people’s mind this year.”

The Southbourne Tax Group: Get richer this tax season in 10 easy ways millennials can maximize refunds and avoid costly mistakes

By now, you've probably heard people talking about tax season — or maybe you got the hint that you'll need to start filing your taxes soon, because of that complicated-looking W-2 form that arrived at your house.

It's only natural to want to procrastinate on filling out those ugly forms (1040-what?) or to feel intimidated or overwhelmed.

Not only do most millennials say they fear filing their taxes — more so than other generations — but young Americans are also scared to make a mistake on their taxes, and are less likely to seek professional guidance.

That might be especially true for you if this year is only your first (or second... or third...) time giving it a try without help from parents.

In fact, you should remember that tax time can be a happy time — especially if you are due for a big refund in the form of a check from the government.

Here are some pointers on what to look out for as you're doing your taxes, so you avoid mistakes and maximize any money due to you. And remember: When in doubt, you can always call the free tax help line that the IRS provides.

1. Know the deadlines — or pay the price

First and foremost, you simply must review a simple list (like this one from Mic) showing when taxes are due. Don't be off, even by a couple of days, or else you run the risk of paying a penalty for filing late.

You might want to circle April 18 on your calendar — as that’s the drop-dead deadline to file your taxes this year. And if you haven’t received your W-2 from your employer by Valentine’s Day, you might want to ring the IRS for help or to file an extension.

Speaking of extensions…

2.Don't make this common mistake regarding extensions

Time waits for no man, and apparently, neither does Uncle Sam.

There might be a reason why you choose to file for a tax extension (hopefully you get it!) that could give you six months of breathing room to get your ducks and tax paperwork in a row.

That, however, does not mean you get to simply shoot an IOU to the government, should you owe them. According to the IRS, "an extension will give you extra time to get your paperwork to the IRS, but it does not extend the time you have to pay any tax due."

"It is a common misconception that if you file for an extension, your obligation to pay your tax bill is also delayed. This is not true!" Jacob Dayan, a partner and co-founder of Community Tax, a tax resolution and debt relief services company, reiterated to Mic. "If you don't pay your tax bill at the deadline you are delinquent, even if you've requested an extension for your return."

3.Beware tax-related identity theft

You might be dreaming about all the awesome things you plan to buy with the tax return you hope to get, and we hope you’re able to enjoy it!

But one common danger all millennials (and everyone, really) needs to look out for is tax-related identity theft. Believe it or not, there are cold-hearted people out there who are looking for opportunities to steal your Social Security number — in order to file a phony tax return and claim your bounty.

In 2016 alone, the IRS discovered thousands of fraudulent refunds and has been working on the double to reduce tax return fraud.

Alex Hamilton, a communications professional at the Identity Theft Resource Center, advises taxpayers to file as early as possible to help reduce the risk of tax-related identity theft. In addition, Hamilton told Mic, it's important to "regularly update your anti-virus software to protect you from a cyber-attack which can steal your personal data."

To prevent tax-related identity theft, the IRS also encourages tax filers to question suspicious emails and "threatening calls" from people posing as representatives of your bank — or even the IRS — and not to carry your Social Security card.

For more tips on how to protect yourself from tax-refund fraud, visit the IRS website.

4.Use student loans — to your advantage

Sadly, it feels like student loan debt is just a universal part of being a millennial.

But there's a silver lining: Millennials contending with student loans have the opportunity to deduct interest paid on student loans.

"Many millennials rush to get their taxes done online as soon as they get their W-2s and don’t wait for their 1098-Es from their student loan providers," Joseph Carpenito, a licensed financial advisor at Raymond James and founder of the financial site MyPlan2Day.com, explained to Mic. "[For] a young person with limited deductions, student loan interest may potentially be one of their largest deductions."

You can deduct up to $2,500 of student loan interest paid in a given year.

There are, however, income limits for this deduction, so be sure to check out tips for claiming the student loan interest deduction on the IRS website.

5.Make the most of small business tax perks if you work a side hustlev

Do you love moonlighting as a freelancer or someone who earns extra money doing what you love? Surprise!

The government might actually consider you to be a small business owner.

"Millennials are more involved in the 'gig economy' than other demographics, and many of them like the appeal of working for themselves in jobs like Uber drivers and delivery drivers," Max Robinson, an associate for Jumpstart, a research and experimentation tax credit specialist company, told Mic.

"However, these millennials need to realize that working in jobs like this classifies them as small business owners. This means they're eligible for certain deductions, like petrol expenses," Robinson added.

TL;DR: You might be owed cash back if you spent money on business expenses, so read up on what might count. Cha-ching!

6.Know what the 1099-MISC is for

As the IRS mentions on their website, you don’t have to have a business in order to report income as self-employed or an independent contractor on your taxes.

“In most cases, if you receive a form 1099-MISC it means you are considered self-employed by the government,” Crystal Stranger, president of the tax firm 1st Tax and author of The Small Business Tax Guide, told Mic.

“Not only does this mean you need to report your income and expenses on a Schedule C and pay self-employment (Social Security & Medicare) taxes on your net income, but also, in a lot of places, you will need to register with the city or state and may owe taxes or at least have a filing requirement on the local level," Stranger said. "Missing the local level filing can have bigger tax and penalty implications than making a mistake on your federal taxes.”

7.Use tax software to save time (and money)

Filing your taxes can be a truly overwhelming experience — especially if it’s your first time. It’s easy to feel stressed and worried you're not qualified to operate in the land of adulthood without a parent or guardian nearby.

But that doesn't mean you can't take care of business yourself.

"This may be your first time doing your own taxes, but you don’t have to take your taxes somewhere and pay hundreds of dollars to have them prepared," TurboTax Certified Public Accountant Lisa Greene-Lewis told Mic. "You most likely are one of the 60 million Americans who has a relatively straightforward tax return, so there is no reason to pay someone to do your taxes. You may even be able to file your federal taxes for free."

Companies like TurboTax, H&R Block, and even the IRS offer free tax-filing services to qualifying taxpayers that will not only make your life a little more hassle free, but also help keep some money in your pocket.

Just remember to make sure to report business expenses and other opportunities for deductions when the software prompts you. Speaking of which...

8.Dig deep for deductions

In a rush to get through your taxes as quickly — and with as few gray hairs — as possible, it becomes easy to skip over deductions that can help lower your tax bill. In fact, there are a number of overlooked tax deductions that some experts consider money left on the table.

“It’s easy to overlook the many ways you stay fabulous by helping others throughout the year,” Richard Lavina, CEO of Taxfyle, a personal and business tax filing app, told Mic.

The Southbourne Tax Group: Five things early tax filers need to know

Tax filing season begins Monday but some early filers face new hurdles, as crackdown on fraud continues.

Opening Day for the IRS is Monday.

That's when the Internal Revenue Service will start accepting electronically filed tax returns. We have until April 18 to file returns but many file earlier in the season, if they're expecting large refunds.

The tax filing deadline this year is Tuesday, April 18, instead of the traditional April 15, because of some quirks of the calendar. April 15 is a Saturday. But the deadline won't be shifted to Monday, April 17, because that is Emancipation Day, which is celebrated in Washington, D.C.

What do tax filers need to know this season?

1. Get an appointment if you want to talk to someone at IRS offices.

Don't expect to drop into an IRS office to get any help this tax season. All offices are appointment-only now.

If you need to visit an IRS Taxpayer Assistance Center in person, you must schedule a time by calling 844-545-5640 for the appointment hotline.

Taxpayers are asked to check IRS.gov for the days and hours of service, as well as the services offered at the location they plan to visit.

2. Beware of a new hurdle if you've used a special Individual Taxpayer Identification Number.

Some tax filers will be unable to file their federal tax returns if they do not update Individual Taxpayer Identification Numbers. Warning: Any ITIN that has not been used in the past three years will no longer work for filing that return.

On top of that, individual tax identification numbers that have middle digits of 78 or 79 also expired this year.

Tax filers in these situations must renew an Individual Taxpayer Identification Number as early as possible because they cannot file a tax return without one.

The super-sized headache? The IRS notes that it can take up to 11 weeks during the peak of the tax season to get that number from the time you send in a renewal application, known as Form W-7, for the IRS to process the application and notify you about your status.

Why the change? A new federal law to combat fraud included the requirement that certain Individual Taxpayer Identification Numbers expired on Jan. 1.

"Anyone filing a tax return with an expired ITIN could experience return processing and refund delay as well as denial of some tax benefits until the ITIN is renewed," the IRS said online in a statement.

These identification numbers often are used by people who have tax-filing or payment obligations under U.S. law but are not eligible for a Social Security number.

3. Some struggling families will face delays for their tax refunds.

The IRS notes that more than nine out of 10 refunds will be issued within less than 21 days, which is good news.

But tax filers who benefit from the Earned Income Tax Credit and the Additional Child Tax Credit should not expect their refunds until possibly the week of Feb. 27, even if they file as soon as this week.

The reason? Congress is cracking down on tax-return related fraud. The Protecting Americans from Tax Hikes Act mandated the IRS delay issuing tax refunds for returns claiming the EITC or the Additional Child Tax Credit until Feb. 15. The move is designed to give the IRS more time to detect fraud and prevent refunds from being issued to ID thieves who file fake tax returns using such credits.

But consumers who depend on the refund cash will face extra delays, given holidays and weekends.

Another thing to note: The IRS online "Where's My Refund" tool will not show an estimated date for many tax returns involving the special credits until after Feb. 15.

"So don't panic in late January and mid-February if you don't see a refund date on 'Where's My Refund.' That's just how the tool will operate given the special circumstances with the EITC and ACTC refunds," said IRS Commissioner John Koskinen in prepared remarks in early January.

4. Look out for high-cost, quick-cash on tax refund advances.

Tax filers might be tempted by refund anticipation loans that proclaim "no fee" will be charged. But Chi Chi Wu, staff attorney for the National Consumer Law Center, warns that in some cases, borrowers could face other higher fees for tax preparation or another product.

Advance loans are being heavily marketed this year by some firms, including H&R Block and Jackson Hewitt, in light of the new delays ahead for tax refunds for those who file those Earned Income Tax Credit and the Additional Child Tax Credit.

Jackson Hewitt is marketing for its Express Refund Advance, a loan of up to $1,300 that has no fees, a 0% annual percentage rate and no credit check. To get the loan, you will have to pay to file your taxes with Jackson Hewitt.

H&R Block began offering a tax-related loan for a limited time beginning Jan. 6. The H&R Block Refund Advance offers loans in the amounts of $500, $750, or $1,250 upfront for 0% interest.

The loan is loaded onto an H&R Block Emerald Prepaid MasterCard.

The amount of the advance will be deducted from tax refunds and reduce the amount that is paid directly to the taxpayer. Both Jackson Hewitt and H&R Block only offer the loans to customers who visit their offices and outlets; it's not available online.

5. Take a close look at that W-2 Form.

Some tax filers are going to discover that they have to deal with a "Form W-2 Verification Code."

About 50 million W-2 forms will include a 16-digit verification code that tax filers or preparers will need to add when prompted by tax software. About 2 million W-2s had such a code during the 2016 filing season.

The IRS anticipates that the verification code ultimately will be used on all W-2 forms in future years.

Again, we're looking at another hurdle to try to corral the crooks and prevent the filing of fake tax returns.

6. Remember, scam artists love tax season.

"We continue to ask the public to be vigilant because the scamming doesn't stop," said Luis D. Garcia, IRS spokesperson in Detroit.

The con artists pretending to be from the IRS might reach out via your e-mail in-box, your mailbox or even knock on your front door, Garcia said.

And the crooks are going after tax preparers, too.

Earlier in January, the IRS warned that cyber criminals were pretending to be tax filers who wanted help filing their returns.

The first e-mail says something like: "I need a preparer to file my taxes."

If the tax preparer responds, a second e-mail is sent that has either an embedded web address or contains a PDF attachment that has an embedded web address.

"The tax professional may think they are downloading a potential client's tax information or accessing a site with the potential client's tax information," the IRS warned.

"In reality, the cyber criminals are collecting the preparer's e-mail address and password and possibly other information."

Oddly enough, I even got one of these phishing e-mails last week. The language was stilted and off-kilter, which can be a warning sign.

It began "Hello, CPA," which I am not.

"I need a careful and experienced high quality accountant, to handle all matters of accounting including tax preparation, IRS problem resolution, and matters expected of a CPAs to handle for Individual and Small Business," the e-mail read.

"I don't need that stereo typically dull, introverted and boring accountants, I believe in the value of partnership in business relationships."

"Find attached is my tax documents."

Love that last line. I'd love to respond: Find this attachment for a way to learn how to diagram sentences and master subject-verb agreements.

But then again, we don't want the scammers to get even better at this game, do we? Best to kill and ignore all such phishing e-mails.

The Southbourne Tax Group: Tips to maximize your tax refund

The 2017 tax season began this month and local tax accountant, Jennifer Eubanks with Mcneel CPA is offering some tips for people who haven't filed for their refund yet.

"A lot of people that are self-employed don't look at taking the self-employed health insurance," says Eubanks, "With health insurance being so high you can take a deduction."

Another deduction Eubanks says people often miss out is their health savings account where you put money into the account but only use it to foot medical bills.

"You also get to take a deduction on your tax return for putting money into a health savings account," says Eubanks. "It's kind of like a retirement account except it is for medical expenses."

Meaning just like a 401k, the more you put in the less taxable income you have, increasing your refund.

Another tip is for parents that have kids in college, American opportunity tax credit is available.

"Anything that relates to school like books, tuition," says Eubanks. "Any kind of qualifying expenses for that, they can take that deduction so they need keep up with all the expenses they have while they're in school."

Eubanks says the IRS is cracking down on fraud this year delaying the release of earned income credit and additional child tax credit until mid Feb.

"Claiming children that are not supposed to be on their tax return so the IRS is looking into more of those earned income credit trying to eliminate a lot of fraud," says Eubanks.

When filing your taxes Eubanks says to keep all your receipts and expenses organized to make the filing process easier.

Employers have until Jan. 31 to send W-2 forms and tax returns have to be filed by April 18.

The Southbourne Tax Group: BBB Offers Tips on Filing Taxes, Avoiding Fraud

While all working citizens should have had their W-2 form delivered by now, it’s important for taxpayers to take time and use caution when selecting a tax preparer you can trust.

It’s important to avoid mistakes that could result in additional fees or even tax identity theft.

Unfortunately, identity theft is not the only thing to watch out for when enlisting the help of a tax preparer or tax software to file your taxes. BBB receives thousands of complaints from consumers against tax preparers every year.

In 2016, BBB received nearly 3,000 complaints against tax preparation businesses nationwide.

Common complaints state that the tax preparer made errors in their return which resulted in fines and fees. Other complaints allege customer service, billing and contract issues.

BBB offers the following advice when searching for a tax preparer:

* Look for credentials. Ideally, your tax preparer should either be a certified public accountant, a tax attorney or an enrolled agent. All three can represent you before the IRS in all matters, including an audit.

* Don’t fall for the promise of a big refund. Be wary of any tax preparation service promising larger refunds than the competition. Avoid any tax preparer who bases their fee on a percentage of the refund.

* Think about accessibility. Many tax preparation services only set up shop for the months leading up to the April 15 deadline. In case the IRS finds errors, or in case of an audit, make sure you are able to contact you tax preparer at any time of the year.

* Read the contract carefully. Read tax preparation service contracts closely to ensure you understand issues such as how much it is going to cost for the service, how the cost will be affected if preparation is more complicated and time consuming than expected and whether the tax preparer will represent you in the case of an audit.

* Ask around. Ask family, friends or co-workers for recommendations on filing your taxes, whether it’s through a CPA, tax preparation business or online tax service that allows you to file your own taxes. To find a BBB Accredited tax preparation business near you, go to bbb.org.

Tax season is also a busy time for identity thieves. Tax identity theft occurs when someone uses your Social Security number to get a tax refund, or a job.

According to the Federal Trade Commission (FTC), tax identity thieves get your personal information in a number of ways, including: going through your trash or mailbox; through emails asking for information, which appear to come from the IRS; employees at hospitals, nursing homes, banks and other businesses stealing data; and phony or dishonest tax preparers misusing confidential information or passing it along to identity thieves.

To lessen the chances of becoming a victim of tax identity theft, the FTC has the following advice, whether you choose to file your return yourself or use a tax preparer:

* File your tax return early. And do it before identity thieves have a chance to steal your information. Also, make sure your address is up-to-date so your W-2 doesn’t get lost in the mail or end up in the wrong hands.

* Use a secure Internet connection. If you file your return electronically, don’t use unsecure, publicly available Wi-Fi hotspots.

* Shred documents. This includes copies of your tax return, drafts or calculation sheets you no longer need. The IRS recommends that most people keep three years’ worth of tax returns in case of an audit. Keep hard copies and electronic files in a secure location.

* Check your credit report. To ensure your identity hasn’t been stolen or compromised, go to annualcreditreport.com to get your free credit report.