As the tax season approaches, many American taxpayers find themselves grappling with the often-daunting task of preparing and filing their returns. While the pursuit of refunds can incentivize some to act swiftly, there is an equally compelling reason to avoid procrastination: tax-related identity theft. Amidst reports and surveys emphasizing the pressing urgency of filing, it becomes increasingly clear that timely action is not just a matter of financial prudence, but also a crucial measure of personal security.
Surveys indicate that nearly one-third of Americans procrastinate when it comes to filing their taxes. This statistic, revealed by the real estate firm IPX1031, underscores a widespread reluctance among taxpayers to engage proactively with their obligations. The consequences of this delay are multifaceted, extending beyond mere inconvenience to encompass significant security risks—which are exacerbated by the occurrence of identity theft. Adam Brewer, a tax attorney based in San Diego, succinctly articulates this sentiment: “If you have all your documents, get that return submitted.” While many may view procrastination as a harmless decision, the reality is that it can open the door to vulnerabilities.
Identity Theft: A Growing Concern
Tax-related identity theft poses a real threat to individuals who delay their filings. By waiting to submit a return, taxpayers unwittingly afford potential criminals the opportunity to exploit their Social Security numbers. Brewer highlights the danger by stating that early filing can effectively safeguard one’s identity against fraudulent returns. The repercussions of identity theft are significant, as documented by National Taxpayer Advocate Erin Collins, who reports that victims suffer extensive delays in processing and receiving refunds—even extending to an average resolution time of over two years.
The figures speak volumes. According to a Treasury report, the IRS confirmed a troubling rise in identity theft returns, with numbers escalating from 12,600 in the previous year to approximately 15,600 in 2024. Such increases indicate a growing challenge for taxpayers attempting to navigate an already complicated filing process. The overwhelming nature of these statistics serves as a wake-up call for those who might consider delaying their returns.
While the urgency of filing could lead individuals to rush through their returns, experts recommend a more cautious approach. Although many tax forms are readily available in January, some may be delayed until February or even March. This delays the filing process for many and can lead to costly mistakes if individuals submit incomplete returns. Tom O’Saben, an enrolled agent, emphasizes the importance of meticulousness in tax preparation; double-checking vital information such as Social Security numbers, names, and bank account details is imperative. The notion of “measure twice, cut once” resonates strongly in this context, advocating for accuracy over speed.
The recent wave of layoffs within the IRS has raised valid concerns regarding taxpayer services. Experts warn that the diminished workforce could impede the efficiency with which returns are processed and support is provided to filers. Nevertheless, as O’Saben notes, an accurate electronically filed return with direct deposit options should remain relatively unaffected by these layoffs, and taxpayers should still expect a turnaround of about three weeks. It is crucial for individuals to remain vigilant, knowing that even in the face of potential slowdowns, following proper filing procedures can help offset the impact of such turmoil within the agency.
As tax season unfolds, the message remains clear: proactive filing is necessary not just for financial reasons but also for enhanced personal security against identity theft. Understanding the statistics of procrastination, the magnitude of identity theft threat, the need for accuracy, and the ramifications of IRS workforce reductions can empower taxpayers to take action. By adopting a mindset of diligence, individuals can protect their financial interests and maintain the integrity of their identities throughout the filing process. Ultimately, the emphasis should be on preparation, diligence, and the timely submission of tax returns, which not only secures finances but also fortifies personal identity in an increasingly uncertain environment.