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How should I handle suspected fraud?
How should I handle suspected fraud?

Fraud, Identity theft, Fake ID, Suspicious activity

Success Team avatar
Written by Success Team
Updated over a week ago

We understand that there are a few bad apples in every bunch.  So when you suspect that you've picked up a bad apple as a client, there are a few things that you should know:

  1. Be alert - Fraud comes in all sorts of shapes and sizes.

  2. If you suspect fraud, report it via the help chat right away.

  3. Don't file a return that you don't feel comfortable with

So let's dive into a little more detail on these items.

Be Alert
Some clients aren't filing fully fraudulent returns.  Some of them just want to bend the numbers to their favor.  It is your professional duty to provide your client with the highest level of professional service.  This means obtaining every credit and including every deduction that they are legally entitled to; it also includes helping them plan their transactions so that they're structured in the most legally advantageous way possible.
Some individuals may be more egregious in their attempts at fraud.  Some of them may be engaging in identity theft and may be using our service as a means of perpetrating identity theft en masse.  In these situations, you are the front-line of defense.  Some of the easiest ways to spot these individuals is to demand and examine photo IDs;  These IDs are often doctored and faked, and spotting them can be surprisingly easy.  If you're suspicious, do a Google search for the ID that they submitted.  

  1. Do the fonts look right?

  2. Does the signature look like a signature or does it look like a font that supposed to look like a signature?

  3. Are the units of measurement consistent (lbs vs KGs - ft/in vs CMs)?

  4. Does the whole ID look like it's a photo?

  5. Are there holograms over the pictures or are they unobstructed?

Some of them may provide inconsistent answers when questioned about their documents.  
In any case, you need to stay alert when it comes to these things.

If you suspect it
Unfortunately, someone who is engaged in identity theft, will often use a stolen credit card to pay for your services.  As a result, we cannot bill a card that we suspect to be stolen.  To help reduce the amount of time you spend on these returns, we strongly recommend that you obtain their photo ID at the onset.  We also strongly recommend that you report anything that is suspicious so that we may further investigate and see if there is any other evidence to corroborate your suspicions.  If you feel that it is necessary, you may report your suspicions to the IRS as well.  You may fill out form 3949-A to report your concerns.

Don't file it
 If you have your doubts about the correctness of a return or the underlying information, or you doubt the authenticity of the identity of the person that is using your services, you should not file the return.  Instead, contact the Taxfyle Team and they will remove the job from your queue and they will handle the situation from there on out.

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