Thousands of people each year fall victim to tax fraud, but Ian Andrews Tax Fraud Corporation has been working fervently since 1996 to spot scams before consumers fall prey to fraud. Ian Andrews proudly serves the Chicago area as CEO and Founder of the Ian Leaf Corporation. The U.S. Treasury Department has estimated tax fraud is costing the tax payers $54.7 billion dollars each year. Leaf points out that there are two major types of tax fraud that greatly affect the general public. In a recent PRN News article he gives away helpful tips to their readers on how to protect themselves from a potential scam.

How To Avoid A Potential Tax Scam

Protect Your Identity

Protecting your identity is one of the most practical ways to avoid potential tax fraud. A thief will steal your identity and file a tax claim in your name. Recovering from tax fraud because someone stole your identity is a lengthy process that could cost you thousand of dollars in penalties and fines from the IRS. Ian Leaf strictly warns his clients to protect their identity while filing their taxes annually.

Ian Leaf is a tax fraud expert that warns his clients of two potential types of tax fraud that thousands of people become victim too each year. There has been an increase in the number of private tax consultants that are committing tax fraud and individuals filing taxes are committing fraud by over filing on their taxes and receiving tax credits they don’t actually qualify for whether intentional or unintentional. Leaf offers insight on how to avoid these two types of fraud.

Tax Preparation Fraud

An unscrupulous tax preparation consultant will steal your identity, over charge the client, and/or claim unnecessary credits. This can cost you thousands of dollars in fees from the IRS and possible jail time. The government is putting much tougher sanctions on tax consultants that commit fraud including jail time. To avoid this situation you should check the credentials of any person that you use to prepare your taxes. They should have a good rating with the Better Business Bureau and be licensed and certified. In fact, avoid online tax preparation if you can’t find them listed as an IRS approved tax consultant. Best of all, Leaf says consumers should use an advertised tax consultant that has a strong reputation with the community. Big name tax consultants may have higher fees, but they have a policy that entitles customers assistance during a tax audit or a mistake on their taxes.

Finally, Ian Leaf says, many people try to file their own taxes and commit fraud by over claiming on their taxes. Numerous of people claim dependents that aren’t a part of their household by claiming someone’a children. When this type of fraud is committed the individual is subjected to stiff penalties, taken through an audit, and possibly barred from filing their taxes the following year.

You’re encouraged to visit the Ian Leaf Corporation’s official website for details on how to avoid tax fraud.