As Tax Day is upon us, the Internal Revenue Service has just released a new fraud alert as part of its Dirty Dozen educational series to raise awareness and protect both taxpayers and tax professionals from scams and common tax schemes. The agency begins its annual series to coincide with filing season when fraudulent schemes tend to be most prevalent. In its newest release, the agency warns taxpayers to be wary of scammers who claim to help create an online account on the IRS website.
An online account with the IRS makes it easy to view and submit important tax information, however, it's also becoming an easy way for identity thieves to obtain personal tax and financial information that can then be used to file fraudulent returns tax on behalf of the victim and to steal their refund. For example, individuals can log in and view their payment history, current balance, and copies of select IRS notices.
Scammers contact claiming they can help set up an account, sometimes posing as IRS employees, and often ask for the taxpayer's personal information, including address, social security number or individual taxpayer identification number (ITIN) and identification with photos. The IRS maintains that setting up an online account is simple and should not require unsolicited third-party assistance.
The IRS or any trusted bank or financial institution would not call or email to request such sensitive information for any reason. Although the IRS does not provide victim demographics, it appears the most vulnerable targets are the elderly and those individuals who may not be tech-savvy or struggling to self-declare returns before the looming deadline.
IRS Commissioner Danny Werfel explains, “This is another reminder that people should be wary of unexpected contact from the IRS and other financial institutions. Taxpayers should avoid sharing sensitive personal information via phone, email or social media to protect yourself and avoid being caught by these scams.”
Scams Running rampant
Earlier this year, the IRS also issued a warning for tax professionals to beware of fraudsters posing as potential new clients. These seasonal scams are tied to tax season, with cybercriminals targeting accounting groups and tax preparation firms with fake phishing emails. The senders of these emails claim to be individuals seeking new representation and may appear to contain a potential client's tax information, but actually contain a malicious link or attachment. These scammers may collect the tax professional's email address, password, and possibly other information, or they may upload malware to their computer to gain access to the system. There have even been reported cases where these new customer phishing emails appear to come from a legitimate sender (such as a colleague or friend) or organization because their friend or colleague had their email account credentials stolen.
Tax professionals should also be on the lookout for scammers impersonating the IRS, state tax agencies, tax software companies or financial institutions.
As always, the IRS encourages individuals to report any potential tax fraud or fraud.