Avoiding tax fraud this season

TERRE HAUTE, (WTHI) - This week Indiana and the Federal government began accepting your income tax returns. It's also a time of the year that law enforcement sees a rise in identity thefts and fraud according to the IRS.

There are some simple ways to keep your money and your identity safe during tax season.

Each spring 1040  tax forms become a part of your life; however, each tax return has a risk involved that could take away a part of your life.

"We definitely have seen identity theft has been on the rise here in the past few years for tax purposes,” Mike Perkins of Larrison’s Tax Service explained.

One day into tax season and Perkins told us one of his clients is already dealing with an identity theft, and he says fixing the problem isn't so simple.

First, the IRS contacts all parties involved, and then they go through the process of verifying who the real person.

"If [you’re] looking for a refund, it's [going to] take many months to get it cleared up,” Perkins explained.

While taking a break from working with some of his clients, Mike shared some tips to protect you and your money. He said you can start with keeping track of your personal information and be aware of bogus emails.

"The IRS will never ever email you to ask you anything, period," he explained.

For those of you who file taxes online, there's an equally high risk of your information falling into the wrong hands.

But according to Indiana State University information technology specialist Dr. Joe Ashby, there is a basic step to make sure your information is safe.    

"At the top of your screen you'll see a lock and an indicator, [indicating] that it's a secure connection," Ashby explained.

As far as using your cell phone for doing taxes, he said you may want to think twice.

"At this point, there’s less known about the security in general of [mobile tax returning]. I wouldn’t recommend that; at least, not in today's market,” Ashby said.

Whether filing in person or online, privacy seems to be the best policy.