Avoid Becoming a Victim OR Perpetrator of Tax Fraud

By Mary Jo Healey, Market Manager – Des Moines, Marine Credit Union
Tax fraud perpetrators provide false statements as material facts, know a statement was untrue or intend to deceive someone, the victim/

Tax fraud victims relied on a false statement or suffered damages as a result of acting on the intentionally false statement.

Don’t let yourself fall into this trap! To protect yourself against becoming a perpetrator OR victim, use the following guidelines to prepare your tax return:

  1. When a third party prepares your taxes:
    1. Use a well-known company or a recommendation from a friend. Think long-term. Will they be around should questions arise?
    2. Avoid preparers who base their fee on the amount on the return.
    3. Never sign blank forms.
  2. When preparing your own taxes:
    1. Use a well-known, reputable tax software to walk you through the process.
    2. Make sure you have copies of everything including receipts for charitable contributions and travel expenses.
    3. You need to be able to prove your deductions if by chance you are audited.
    4. If in doubt, don’t deduct.
    5. Review changes to tax laws each year.
    6. Above all, use common sense. If it sounds too good to be true, it usually is.

Check out these other tips from the IRS.

Marine Credit Union and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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