Avoid Becoming a Victim OR Perpetrator of Tax Fraud

Someone writing on a tax document

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.

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.

Related Posts

March 14, 2023
Taxpayers Beware: Five Common Scams to Avoid During Tax Season

At this time of year, criminals love to impersonate IRS agents. Scammers use the anxiety many of us feel surrounding our taxes to trick us…

Read More
May 20, 2021
Tips and Strategies to Pay Off Your Debt

By Ken Brossman, Senior Vice President and Regional Manager – La Crosse, Marine Credit Union Credit cards, car loans, recreational vehicle loans, mortgage loans, school…

Read More
February 12, 2021
Make Your Tax Return Work For You

In just a few weeks (or less), many Americans will be receiving a tax refund. The average tax refund received in 2020 was just shy…

Read More