TaxBandits Measures to Prevent Fraudulent Tax Filings

Claiming Wrongful IRS Refunds

Scammers may use stolen EINs to file fraudulent tax forms and claim refunds. One example of this is wrongfully claiming the Employee Retention Credit (ERC), which is becoming increasingly problematic. These scammers often target businesses that aren't actually eligible through aggressive marketing tactics, sometimes without the business's consent at all.

Abusing Form 8453-EMP

Form 8453-EMP is designed for tax preparers to obtain permission from their clients to file employment tax forms on their behalf. With the rise in fraudulent filing, there is also an increase in the misuse of this form.

Providing a False Email Address

A key indicator of wrongful tax filing is when an individual creates an account or attempts to file a tax return using an unauthorized or non-existent email address.

Our Commitment to Security

At TaxBandits, we recognize the importance of safeguarding your personal information and financial well-being from the ever-present threat of tax identity theft. Our unwavering commitment to security and privacy is evident in the array of measures we employ to keep your data safe from unauthorized access:

• Identity Verification Before Filing Returns

  We implement rigorous identity verification processes to ensure that only legitimate users with verified identities can access and submit tax forms through the TaxBandits platform. This initial layer of security sets the foundation for a secure tax filing experience.

• Harnessing the Power of AI to Safeguard Your Identity

  Our advanced AI engine works tirelessly to monitor for any fraudulent or suspicious activities. By leveraging artificial intelligence, we can swiftly detect and respond to potential threats, enhancing the overall security of your tax filings.

• Layered Protection: From IP Tracking to Activity Logs

  At TaxBandits, we've implemented a multi-tiered security approach to ensure that your data remains invulnerable.

  • IP Tracking

    We track and log IP addresses associated with user activity to trace the origin of any suspicious behavior. This helps us pinpoint and address potential security breaches in real time.

  • Activity Logs

    Users have access to detailed activity logs, enabling them to monitor and identify any unusual or suspicious actions on their accounts. These logs provide transparency and empower users to take control of their tax filing security.

• Enhancing Access Security with Two-Factor Authentication

  TaxBandits offers robust two-factor authentication (2FA) options, adding an extra layer of protection to your account. With 2FA enabled, even if your login credentials are compromised, unauthorized access becomes significantly more difficult.

• Safeguarding Your Most Sensitive Data

  We employ cutting-edge measures to protect Personally Identifiable Information (PII) data. Our secure encryption protocols and data handling practices ensure that your sensitive information remains confidential.

• Regular Monitoring and Auditing

  Continuous monitoring and auditing of our systems and processes help us identify and address potential vulnerabilities promptly. This proactive approach ensures that TaxBandits remains at the forefront of security.

• Privacy Controls

  We provide users with granular privacy controls, allowing them to manage their data-sharing preferences and control who has access to their tax information.

Protect Your Credentials

Safeguard your TaxBandits login credentials, including your username and password. Avoid sharing them with anyone.

Stay Informed

The IRS distributes information to help business owners and tax professionals avoid phishing scams and other fraudulent activities. We often address these in the TaxBandits Blog as well.

Regularly Review Activity

Periodically review your activity logs and account statements to spot any unusual transactions or access.

Report Suspicious Activity

If you suspect fraudulent activity or find yourself a victim of this activity, steps for reporting fraud to the IRS can be found here. Remember, vetting your tax preparer is crucial to secure filing. This can be done using this IRS database of tax preparers’ credentials.