Maybe you file your taxes the old-fashioned way. Perhaps, you’ve subscribed to the modern conveniences of e-filing. In either case, you probably have a lot of documents. Mixed in, are those associated with your business taxes.
They include account statements and receipts. They also encompass information about income and payroll. Make sure you’ve got your document destruction policy well in hand. It is especially important to implement it during tax season
There is so much pertinent paperwork floating around. Therefore, it would be all too easy for important data to get swept into the trash. It is an easy target for dumpster divers.
This even applies to documents shredded on-site. That is because they could end up reconstituted. That will deliver all the data criminals need to steal your identity.
Have a reputable mobile document shredding service on your side and use it appropriately. By taking that step, these risks can be mitigated.
Why do you need a professional document shredding company? How can it keep you safe during tax season? Here’s what you should know.
The Dangers During Tax Season
Naturally, you never want to make it easy for thieves to engage in identity theft. That is why cyber security, employee training, and proper document management and shredding are so essential. However, tax season is particularly fraught with risk.
Tax fraud involving businesses is a major issue. It has to do with refunds made for W-2 forms your company never issues. The deadline to distribute W-2 forms to employees is January 31 each year.
However, you may not file your actual business taxes until April 15. During the interim, your employees will start filing their personal tax returns. Eventually, the IRS can compare the wages you reported paying to the W-2 forms received.
Criminals rely on this window of opportunity to file fraudulent tax returns as early as possible. They use stolen EINs and receive money back.
By the time the IRS discovers the discrepancy, criminals are long gone. Then, you are left to foot the bill. Conversely, you’re more likely to go through the process of disputing charges.
There is a good way to avoid this. It’s done by taking steps to properly protect your EIN and other data during the busy tax season. After all, this is the time when it’s all too easy for documents to get lost in the shuffle.
How Your Florida Document Shredding Service Can Help
There’s a lot you can do to protect against identity theft and fraud. This includes doing things such as beefing up cyber security and training employees in safe behavior.
Now is also a good time to upgrade to a mobile document shredding service. They provide secure, locking bins and shred documents while you watch. Additionally, they haul away the remains to a secure recycling facility.