Risks of Not Shredding Tax Statements

Document shredding was a novel concept just decades ago, but modern times call for diligent identity protection for both businesses and individuals. As more information is filed in digital formats, information off just one tax page can give criminals access to credit and checking account information. When people or companies avoid tax statement shredding, they run the risk of theft, fraud and potential fines.

Social Security Number Fraud

Social security and federal tax identification numbers hold the vast majority of information for individuals and businesses, respectively. Tax statements always require this information to match all involved parties during normal processing periods. However, criminals can use these numbers exclusively to access personal information. They’ll be able to take out credit cards and bank accounts in another person’s name, for example. An excellent credit history could be wiped out in just a few weeks of uncontrolled fraud. Document shredders are there for everyone to keep personal information as classified as possible.

Tax Statement Shredding and Audits

Some businesses or individuals could go for an entire year and not notice fraudulent behavior in their name. However, reality strikes when an audit is called on state or federal tax statements. Victims are liable for fraudulent charges, fines and other costs. They must prove another person or company created those charges, forcing that identity into a fraudulent position. This entire scenario can be avoided when businesses and individuals check their credit frequently and use document shredders consistently. An audit takes considerable time and money away from people who must clear their name in the meantime.

Federal Fees

Identity theft goes even further than audits and background checks to include federal fines. It may be necessary to hire a lawyer to defend against fees that are imposed because of fraudulent behavior. Along with the potential fines, businesses and people must pay for attorney fees. Avoid any theft with document shredding. Contact a local shredder and set up a weekly or monthly visit. It’s worth the time to destroy tax documents, protecting everyone’s livelihood in the process. Criminals will simply look for an easier target when shredding is frequent.

Document shredders are found in almost every city across the nation. Even some banks partner with tax statement shredding facilities to ensure their customers are safe from any potential theft. Think twice before throwing out a tax statement in whole. The negative repercussions could be devastating for years.