 Hello, readers! Welcome back to the Hoods Tax & Accounting blog! If this is your first time here, welcome! We’re delighted to be able to share up-to-date information about taxes, bookkeeping, and accounting. Our blog is also dedicated to educating you about tax-advantaged savings accounts, tax provisions, programs, and more! We aim to provide you with the tools needed to meet your short and long-term goals. Our seasoned professionals are experts on the tax code, eligible deductions, and QuickBooks—all necessary fundamentals for saving you money! The Hoods Family has been around since 1988 and our comprehensive accounting and tax planning services are among the best in the Lowcountry. If you’re in need of tax preparation, accounting, QuickBooks training, or business consulting services, do not hesitate to schedule an initial consultation! We are officially in tax season, and Tax Day is fast approaching. We recommend preparing early to maximize your savings and refund. We do offer contactless services using a combination of over-the-phone consultations and digital drop-offs, for safety and convenience. You can read more about our hours and submit a request for a meeting using our website!
As we close out the month of April, we’d like to congratulate you on making it through another tax season! As always, we are still available to help with any questions or concerns you may have. Before we get into today’s topic, we would like to make you aware that starting in May, we will offer tax planning appointments to assist with questions about withholding, small business tax, retirement and investment accounts, sale or purchase of rental properties or other estate, and more! Reach out to us to set up an appointment with one of our knowledgeable tax professionals. Today, we’ll be discussing how to keep your information safe and protect yourself from identity theft and tax refund fraud. Tax season may be over, but thieves and scammers are always lurking, so it’s important to keep your personal information safe year-round. If you’re interested in learning more about how you can prevent identity theft and fraud, you’re in the right place! Let’s get started. Tax-related identity theft occurs when someone steals your personal information to commit tax fraud. This typically occurs by the thief filing a tax return with your information, including your Social Security number, and claiming a fraudulent refund. People are often unaware that their personal information has been stolen and used to commit tax fraud until they file their tax return. While this type of identity theft is generally less common than others, it can still happen, so you should always do your best to keep your personal information safe. Luckily, there are multiple things you can do to prevent tax-related identity theft. Protect Your Online Data and Identity These days, most people are always on a mobile device or computer. We do a lot of things via technology now– Including filing our taxes or filling out forms containing our personal information. With that being said, it is extremely important to have security software downloaded on your computer. You’ll want to at least have a basic security software installed, and make sure that it updates automatically. Essential software to download includes virus and malware protection, as well as a firewall. A firewall is a network security system that monitors incoming and outgoing network traffic. It provides protection from cyber-attacks by shielding your computer. Not only can these softwares protect your computer from viruses, but they can also prevent people from accessing files containing personal information. Another way you can protect your digital identity is through encryption programs. Encryption is an encoding process that converts information into scrambled text that only authorized users can understand. It is essentially a building block of cybersecurity– It protects sensitive information by keeping it confidential. One of the most important efforts you can make to protect digital information is by creating and utilizing strong passwords. Coming up with a password that is difficult to guess; Do not use your own name or a common number sequence such as “123”. You should also avoid using personal information within your passwords, like birthdays or the name of your street. Longer passwords tend to be stronger, so try to come up with a password that is at least 12 characters long. It is also important that every password you use is unique. In other words, do not reuse passwords, especially for websites containing private information, such as online banking. If you need to write your passwords down to keep track of them, do not leave them out in the open where they are easily accessible. Put them in a secret or secure place, or use a trusted password managing tool. Many websites and apps offer two-factor or multi-factor authentication. These methods require a user to provide multiple forms of identity verification before accessing an account. This might require your username and password, and then a one-time code sent via text or email. It is essentially an extra layer of security or protection to make sure it is actually you logging into your account. If multi-factor authentication is offered, take advantage of it to keep your personal information secure. Be Aware of Phishing and Scams Identity thieves use emails or texts to trick users into revealing passwords or other personal information. This process is known as phishing. The sender of the message will often pose as a reputable company or organization, such as the IRS, a bank, or a credit card company. They often attempt to trick the user into clicking on a link by saying they have noticed suspicious activity on the account, need the user to make a payment, or ask them to confirm personal information. Scammers are always updating their tactics and are often successful because their emails or messages look incredibly real– So how can you tell if it’s a scam?
It is also important to note that the IRS in particular does not use email, text messages, or social media to discuss tax debts or refunds with taxpayers. Additionally, the IRS will not demand immediate payment using a specific payment method, and will not threaten to involve local police or other law enforcement. The IRS initiates most contact through regular mail delivered by USPS. If you receive an email, text, call, or other message from someone claiming to be the IRS, do not reply to it or click on any links. You can report phishing scams directly to the IRS through their website. Get An Identity Protection PIN As long as you can verify your identity, you are eligible for an Identity Protection PIN through the IRS. This is a 6-digit pin that prevents someone else from filing a tax return using your Social Security number or Individual Taxpayer Identification Number. The pin is only known to you and to the IRS, so it helps verify your identity when filing a tax return, and it protects your account overall. The IP PIN is valid for one year, with a new one being generated for your account each year. This offers an extra layer of protection for your personal information. You can get an IP PIN on the IRS website. These are just a few of the steps you can take in order to keep your personal information safe and prevent tax-related identity theft. We hope you found this article helpful, and we encourage you to stay safe out there! Here at Hoods Tax & Accounting, our tax professionals protect your privacy and uphold the strictest confidentiality policy. If you have any questions regarding your taxes, or if you need help with tax planning, contact us! As stated above, Hoods Tax & Accounting offers a variety of services including small business consulting, QuickBooks training, tax preparation, accounting, payroll, and more! Visit our website for more information, as well as helpful links to resources you may find useful. Thank you for reading and we hope to see you back next time to keep learning about various tax and accounting topics!
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 With the potential of a third stimulus check heading our way, a brand new round of stimulus fraud has made its ugly appearance. We wanted to shed some light on the topic and to help avoid any issues that might get you in trouble!
Welcome to the Hoods Tax and Accounting Service blog! While we are inching closer to the end of tax season, we wanted to bring a very important topic to our reader's attention! With the possibility of a third or even more stimulus checks coming our way, the rise of stimulus fraud has begun to show its ugly head yet again. When the country needs support now more than ever, you'd think that these scammers and spammers could take a break. Sadly, this is not the case. When people are in need, they are an easy targets for these horrible people to hit. They have taken advantage of people many times before and have been very active during these last 11 months of this global pandemic. While we will get through the pandemic, we might never be able to get through or get over these scammers and spammers. We wanted to share some more information about these ugly scams and how to keep yourself protected and safe! These thieves, scammers, and spammers are taking advantage of honest taxpayers during this current tax season and have been through the stimulus payment periods. With the constant back and forth of the media on the current political atmosphere, it's easy for many to not know if that third potential stimulus check is a reality or not. Tax season is also in its own flurry, as many Americans are trying to file as quickly as they can to get much-needed funds from their tax return. In this fiscal pandemonium that is where these criminals are striking. It is very important to know that a third stimulus has not been distributed nor has it been confirmed, it is still in the works. Also, please remember that you will not receive your tax return until you've filed your taxes, and you will receive it one of two ways. You will either receive it in the form of a direct deposit to your bank account that you have set up with the IRS by providing your banking information, or in the form of a check in the mail. They will not ask you for any personal information directly to access your refund money. They already have all of this information about you. Also, they will never try to send your return to you in any other way nor can you do anything extra for the IRS (outside of filing your taxes) to receive your return. While we know finances are still strained and you need that money, please do not accept any other offers baiting you to receive your tax return early. Also, please do not give away any personal information in exchange for your tax return. That is most likely some kind of scam or criminal target you. Please note, criminals do not discriminate. They will go after anyone to get any information or money that they can. It is also important to understand that the main form of contact for the IRS is through your mailbox. If you receive a text message, phone call, email, or voice mail from someone who claims to be the IRS without you prompting these responses, that too is most likely some kind of spam or attack. While not directly linked, according to ABC 7 Chicago, another scam is to keep your eyes open for is fake COVID packages and test kits. These scams include offers to sell bogus cures, pills, the vaccine, and other medical advice for false and unproven COVID-19 treatments. Please do not give anyone information to receive such materials. These packages are fake, as are the items inside of them. If you are looking for a vaccine or help with a COVID diagnosis, please contact your doctor. One of the biggest things we can recommend is to not engage in any of these criminal efforts. Do not respond to any phone calls, text messages, emails, or letters, even if it's asking them to not bother you. At the end of 2020, CNBC reported that Americans lost over $211 million to these types of scams, and the FTC has received over 275,000 complaints. When the first round of stimulus checks were released and time passed, fraud activity did quiet down. Now that the second has been released and tax season is here, there is no doubt that this rate will rise and continue until tax season is over on April 15th. If a third stimulus check is released, this pattern will repeat itself all over again. Scammers are always looking for an opportunity for their next payout. Remember that one of the many tactics these criminals use is fear, scamming taxpayers into giving them private information, or else! The IRS will not send unprompted emails, texts, nor will they call you with threats of sending you to jail or filing a lawsuit against you. They will also not demand wiring money or gift cards in return for your tax payments. What Are Some Current Scams and Spam Threats? Along with offering cures, vaccines, and help to fight or stay safe from the COVID-19 virus, some current scams look like this:
How Do I Protect Myself from Tax and Stimulus Fraud? With all of these very intelligent criminals hitting their targets on so many different platforms and in so many different ways, how can you protect yourself?
Tax season, tight finances due to a global pandemic, and dealing with staying up to date with potential future stimulus payments is difficult enough. Stay alert and educate yourself to avoid any fraud or scams that could potentially make your life even more difficult. Please never hesitate to contact us if you have any questions, and we are here and ready to help you through your 2020 tax season! Remember, if you are looking for the best accounting services in Goose Creek, the best tax preparation in Goose Creek, business consulting in Goose Creek, bookkeeping in Goose Creek, or payroll services in Goose Creek, we are here for you! Our phone lines and inboxes are waiting for you. Don't hesitate! Please stay safe, everyone. We will see you soon! To learn more and to report fraudulent activity, please visit the IRS or FTC website by following the links below. |
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Hoods Tax & Accounting Service, LLC.
105 Etling Ave, Goose Creek, SC 29445 Phone: (843) 797-5153 Email: admin@hoodstax.com |
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