With tax day just a few days away, experts are warning filers about the growing threat of tax fraud and sharing last-minute tips to maximize returns.
Criminals can get a hold of a Social Security number, file a return in a person's name, and claim a refund before the victim even presses submit.
Tax expert Lance Gordon, President of LGA Tax Services, said while fraud is still a small part of the system, he has seen it grow over time.
"The later you file, the more chance it will happen," Gordon said.
WATCH: Glendale expert share last-minute tips to avoid tax fraud and maximize returns
A recent survey by cybersecurity firm McAfee found nearly one in four Americans say they have fallen for fraudulent activity during tax season, with one in five saying they lost money.
"There's people who call up and try to confirm your Social Security number and people give it to them," Gordon said.
The Internal Revenue Service warns phone calls can be computer-generated and spoofed to appear legitimate.
"Artificial intelligence makes it easier to do and they can do some sophisticated stuff," Gordon said.
Gordon noted the IRS will never contact filers by phone, email, or text message.
"The IRS does not email people. They don't text you and they don't call you. They only send letters," Gordon said.
Gordon and the Better Business Bureau recommend setting up identity verification tools like an Identity Protection PIN from the IRS and an ID.me account.
"The earlier you file, the less chance of this happening," Gordon said.
For those still scrambling to file, there are last-minute tips that could make a difference.
According to the Wisconsin Department of Revenue, renters who make less than $24,680 a year and rent a home or apartment subject to property taxes can qualify for the Homestead Credit.
Contributions to an IRA or employer-sponsored retirement accounts can also be worth up to $1,000, or $2,000 for married couples, on tax returns.
Even those who have already filed might be leaving money on the table. The IRS can look back up to three years, and the state up to four years, to amend returns for missed deductions or credits.
"We have a lot of people, new people coming in and we look at last year's returns and I'd say half time or 40 to 50% of the time, we have to amend the prior return because they missed things," Gordon said.
Filers running out of time can request an automatic extension. However, the IRS says it is not an extension to pay, meaning individuals still need to estimate and pay what they owe to avoid penalties and interest.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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