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IвЂ™ve never used actually software, I just use the companyвЂ™s website to do it all online. I have been filing my federal and state taxes online since 2001. I want to know, why do normal people actually buy the TurboTax or whatever brand of tax preparation software? Does everyone have businesses or itemize their taxes or file really complex forms other than the standard 1040EZ or 1040 that you honestly need the advanced features of the вЂњDeluxeвЂќ versions of software? Because prepaid debit card allow one to both disguise my identity and limit my losses they are the ideal solution for on-line purchases that donвЂ™t require a physical mailing. But in the right hands the demographic data gleaned is often just as valuable. Too often people focus solely on the monetary hit of the compromise of oneвЂ™s financial data. So if third-party website is compromised the hackers now have vital demographicsвЂ¦.perfect for use in synthetic identify theft. The big disadvantage of credit cards is that they require one to use the same address and telephone information tied to the credit card on the third-party website in order for the charge to go through. IвЂ™ve personally stopped using credit cards entirely for on-line purchases that donвЂ™t require an actual physical good to be sent via the postal mail to me. Second, if you keep the balance low on the card the amount of potential loss is limited to the balance on the card. Many prepaid card donвЂ™t require any official identification whatsoever. First, itвЂ™s relatively easy to mask your identity with a prepaid card because you can use a fake address and name. There are several advantages to using prepaid debit cards for on-line purchases. This entry was posted on Wednesday 22nd of February 2012 01:31 AMД«rian writes, вЂњAlso, avoid using debit cards for online purchases.вЂќ Note that just a paragraph above you state that he used a *prepaid* debit card. See this page from the Federal Trade Commission for more information on tax related identity theft.

If, however, you do receive a snail mail notice from the IRS about more than one tax return being filed in your name, or that you were paid by an employer you donвЂ™t know, someone may be trying to fraudulently file a tax return on your behalf. And remember that the IRS does not initiate contact with taxpayers via email.

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If your income is $57,000 or less, you can file your taxes online for free using IRSвЂ™ Free File software, available at no charge here. Also, avoid using debit cards for online purchases. Search for any of the titles listed at the cached version of BlvdsoftwareвЂ™s site and you will probably discover that after the first page of results the vendors start to look pretty sketchy.

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If youвЂ™re in the market for tax software downloads, save yourself the worry and hassle, and stick to known and trusted outlets online.

But fail to do due diligence on a bargain site that sells tax return software and you could be handing your identity and computer over to cyber thieves. The errant buy was doubly insulting because Henry bought the software using a prepaid debit card, and now finds himself unable to dispute the charge.Д«uying software from random sites or companies you know nothing about and havenвЂ™t researched is a bad idea all around. Now heвЂ™s wondering if the program was - at the very least pirated - and at worst - bundled with software designed to surreptitiously snoop on his computer.

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For one thing, he never received a license key from Blvdsoftware, and the program he installed didnвЂ™t request one. He installed the program, but said he didnвЂ™t enter any of his sensitive data. вЂњI was going to download from Amazon - they sell a download-only version - and then I saw the cheaper site and went with them,вЂќ he said in an email. But this year, he opted for digital download. Henry said that in years past, heвЂ™d always bought a CD version of the software. The site said that Blvdsoftware was a company in Beverly Hills, Calif., but the California Secretary of State had no record of the firm, and Google Maps knew nothing of the business at its stated address.

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claimed it had been in business since 2005, but a check of the siteвЂ™s WHOIS registration records showed it was created in late October 2011. Several red flags should have stopped him from making the purchase.

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But when it came time to install the software, Henry began to have misgivings about the purchase, and reached out to KrebsOnSecurity for a gut-check on whether trusting the software with his tax information was a wise move.ДЇive days after Henry purchased the product, vanished from the Internet. His search ended at, which advertised a great price and an instant download. Scott Henry scoured the Web for a good deal on buying tax preparation software.