Recent headlines have sparked alarm with news that as many as 15,000 Internal Revenue Service (IRS) employees could face layoffs. This significant reduction in the workforce could potentially create an environment ripe for tax evasion, turning it into what some might call a “tax cheater’s paradise.” The IRS is already struggling with a lack of adequate staff, which complicates its ability to efficiently handle queries and manage tax-related issues. Currently, taxpayers experience long delays, sometimes waiting months for responses to their tax questions. For victims of identity theft, the process of correcting their records could extend up to a year.
Experts Predict Increase in Tax Evasion
Orly Mazur, a tax expert and associate professor at SMU Dedman School of Law, has voiced concerns that the likelihood of tax evasion will surge if these layoffs proceed. Despite the IRS’s reliance on somewhat antiquated technology, with some systems dating back to the 1960s, automation handles a substantial portion of tax processing. This automation enables the IRS to examine returns for discrepancies and flag those that require further scrutiny, potentially directing them toward an audit.
Strategies for Safe and Efficient Tax Filing
In light of potential staffing issues at the IRS, Mazur advises taxpayers on how to navigate the filing process securely and efficiently. She strongly advocates for electronic filing over paper submissions sent via U.S. mail to reduce processing delays. Filing early is also recommended, along with setting up direct deposit for refunds to minimize wait times. These steps can help taxpayers avoid the backlog and ensure quicker resolution of their filings.
Key Tax Tips and Common IRS Scams
It’s essential to stay informed about the latest tax guidelines and potential scams. For instance, the standard deduction for single filers and married couples filing jointly has increased this year. Taxpayers should also ensure they obtain proper documentation for any charitable donations of $250 or more. Additionally, the energy-efficient home improvement credit offers up to $3,200 annually, which can apply to various upgrades like insulation and energy-efficient appliances.
However, taxpayers must also be vigilant against scams, particularly during tax season. Robocall scams, for instance, are prevalent, with certain states like Texas being heavily targeted. These scams often involve callers posing as IRS agents, threatening arrest, or demanding immediate payment. It’s crucial to remember that the IRS never initiates contact through phone calls for immediate payment or personal information.
Choosing a Reliable Tax Preparer and Avoiding Advanced Scams
When selecting a tax preparer, ensure they are credible and willing to sign the tax return they prepare. A legitimate preparer will have an Electronic Filing Identification Number (EFIN) and a Preparer Tax Identification Number (PTIN), showing they have authorization as IRS e-file providers and professional tax preparers. Beware of “ghost” preparers who refuse to sign a tax return or lack proper identification numbers. Additionally, with the rise of sophisticated scams, including the use of deepfakes created with artificial intelligence, it’s more important than ever to be cautious and informed. As the tax season progresses, taking these precautions can help safeguard one’s financial information and promote a smoother tax filling process.
