Protect Yourself from Tax Fraud

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April is a booming time for tax fraud and tax identity theft, so you need to be extra careful to avoid this. In the past three years, tax identity theft has increased by 25 percent, and it is projected to cost the US $21 billion over the next five years. In fact, the number of tax identity theft cases has more than doubled, in the last four years alone, rising from 48,000 in 2008, to 1.2 million in 2012.

Here are several things you can do to protect yourself from tax identity theft:

If you are already a victim of tax identity fraud, contact the IRS and inquire about a new social security number to guarantee your safety in future years, file a report with your local Police Department, contact the Consumer Affairs to file a report, and file a complaint with the Consumer Financial Protection Bureau.

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