Nearly one-third of Americans procrastinate when it comes to filing their taxes, according to a recent survey conducted by real estate company IPX1031. This hesitation can have significant consequences, particularly with the rising threat of tax-related identity theft. The IRS reported more than 15,600 identity theft returns as of February 29, 2024, a notable increase from approximately 12,600 cases in 2023. The average time to resolve these identity theft cases has also extended, reaching over 22 months by the end of fiscal year 2024.
Identity theft in tax filings continues to pose a "serious problem," resulting in processing and refund delays for many victims. To protect against such issues, experts recommend double-checking critical details such as your name, Social Security number, and banking information before submitting your return. Although many tax forms arrive in January, some may not reach taxpayers until mid-February or later, adding to the complexity of filing accurately and on time.
Filing your tax return early can be a strategic move to prevent thieves from using your Social Security number for fraudulent purposes. The IRS typically processes e-filed returns within 21 days, and if you file accurately and opt for direct deposit, your refund should remain unaffected. Tax attorney Adam Brewer advises taxpayers to submit their returns promptly, regardless of whether they expect a refund or have a balance due.
On the other hand, enrolled agent Tom O'Saben cautions against rushing the filing process.
"Don't be in a hurry to press 'send,'" – Tom O'Saben
This advice emphasizes the importance of accuracy in filing, as errors can lead to further complications and delays.
The IRS has confirmed more than 15,600 identity theft returns through February 29, 2024, highlighting an increase from previous years. Additionally, the average time required to resolve identity theft victim assistance cases has grown from 19 months to more than 22 months. These figures underscore the urgency of addressing tax-related identity theft as a pressing issue.