What to Do If Tax Preparer Stole My Refund
If you’ve discovered that your tax preparer has stolen your refund, it can be a shocking and frustrating experience. Losing the money you were expecting can leave you feeling vulnerable and unsure of what to do next. Here’s a step-by-step guide on how to handle this situation and seek justice.
1. Gather Evidence
The first step is to gather any evidence you have that supports your claim. This may include receipts, communication records, or any other documentation that proves you paid the preparer and were promised a refund. Keep a copy of everything for your records.
2. Contact the IRS
Next, you should contact the Internal Revenue Service (IRS) to report the theft. The IRS has a dedicated hotline for victims of tax-related identity theft, which is 1-800-908-4490. Be prepared to provide your name, Social Security number, and as much information as possible about the incident.
3. File a Complaint with the FTC
The Federal Trade Commission (FTC) is responsible for protecting consumers from deceptive and unfair business practices. You can file a complaint with the FTC online at FTC Complaint Assistant. Provide as much detail as possible about the tax preparer and the circumstances of the refund theft.
4. Report the Incident to Your Bank or Credit Union
If you paid the tax preparer with a credit card or bank account, report the incident to your financial institution. They may be able to help you recover the funds and prevent further unauthorized transactions.
5. Consider Hiring a Lawyer
If the situation is complicated or the tax preparer is uncooperative, you may want to consider hiring a lawyer who specializes in tax law. They can help you navigate the legal process and protect your rights.
6. File a Police Report
In some cases, you may want to file a police report to document the theft. This can be helpful if you need to prove that you reported the incident to authorities. Check with your local police department for more information.
7. Monitor Your Credit Reports
Tax-related identity theft can affect your credit score and financial health. Monitor your credit reports regularly to ensure there are no unauthorized accounts or activities. You can request a free credit report from each of the three major credit bureaus once a year at AnnualCreditReport.com.
8. Take Preventative Measures
To prevent future incidents, take steps to secure your financial information. Use strong passwords, be cautious of phishing scams, and keep your personal information private. Consider using a tax preparer with a good reputation and a history of ethical practices.
Remember, it’s important to act quickly when you discover that your refund has been stolen. By following these steps, you can take control of the situation and work towards resolving the issue.
