Wednesday, August 5, 2015

Does Paper Filing Avoid Identity Theft?

Lu Gauthier of Boston Tax Institute has given me permission to reproduce his email blasts.


Two practitioners have responded to our request below: one files only PAPER returns and has had NO cases of identity theft; another files about 120 returns electronically and has had no cases of identity theft.  Our informal test results appear to be inconclusive.  We need more responses to the questions below in order to determine whether there is any correlation between filing only paper returns and the LACK of identity theft cases.  
  
Recently a tax practitioner who prepares about 100 PAPER Form 1040 returns happened to mention that she has had no cases of identity theft.  Today, when asked, another preparer who prepares only paper returns also mentioned that he has had no cases of identity theft.  BTI would be interested in receiving emails from  other preparers who prepare only paper Form 1040 returns regarding what their experience has been with respect to identify theft in order to determine if there is any correlation between paper returns and the LACK of identity theft cases.  We also would be interested in knowing if anyone who prepares all returns electronically has NOT had any cases of identity theft.  Please advise.  Thank you!       

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