How filing your taxes early can help you prevent identity theft, avoid tax scams
It's officially tax time again as the IRS will start accepting 2024 federal tax returns Monday.
With months until the deadline, you may think it's best to take your time and file closer to April 15. However, tax experts say tax fraud and identity theft become more problematic the longer you wait to file your taxes.
It's recommended that you file as early as you can -- not only to get your refund faster, but you are less likely to be the target of scams.
'Be wary of red flags': Prepare to file your taxes
Filing your taxes can be stressful especially if you're not prepared. Even if you don't have your W2 or all your tax forms, now is the time to get your documents and reach out to your CPA or tax preparer.
Research is key, Alyssa Parker with Better Business Bureau of Eastern Carolinas told ABC11.
"It's always incredibly important to make sure that you work with someone that has a good reputation and is around after- tax season," she said. "Oftentimes that does become an issue if someone just sets up shop and then after tax season has closed the doors, and you never hear from them again."
Parker also added not to get lured by the promise of refunds.
"People get in hot water, get interacted with scammers because they have this incredible guarantee of thousands of dollars in refunds. That's not always going to be the case. So if it's too good to be true, it probably is. Be wary of those red flags," she said.
An ABC11 I-Team Troubleshooter investigation revealed how a Raleigh woman now owes thousands back to the IRS after a tax preparer wrongly filed her taxes. Her taxes had thousands of dollars worth of deductions, which she said had nothing to do with her.
WATCH | Incorrect tax form turns Raleigh woman's $2,700 refund into $4,000 bill
Her taxes were filed by Fwala Serge Muyamuna, a tax preparer at D&V Taxes, also known as Tax Experts.
Following the I-Team investigation, Muyamuna was charged and pleaded guilty to dozens of tax fraud charges. The court documents showed he assisted people in preparing their tax returns, even when he knew the information was fraudulent or false.
He is no longer allowed to prepare North Carolina tax returns.
Direct File program expands to 25 states
If you have a simple tax return, meaning you're not itemizing your taxes, there's a new way to file.
This year, the IRS has expanded its direct file program to 25 states, up from 12 when it launched last year.
The program lets eligible tax filers, including those in NC, file their taxes directly with the IRS for free, starting January 27.
