Thousands of people have lost millions of dollars and their personal information to tax scams. Scammers use the regular mail, telephone, or email to set up individuals, businesses, payroll and tax professionals. The IRS doesn't initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. Recognize the telltale signs of a scam. See also: How to know it’s really the IRS calling or knocking on your door. Scams Targeting Taxpayers Pandemic-related email scams In a continuing twist on a common scam, the IRS, state tax agencies and tax industry warn tax professionals to beware of evolving phishing scams that use various pandemic-related themes to steal client data. Tax season is prime time for phone scams With the new tax season starting, the IRS reminded taxpayers to be aware that criminals continue to make aggressive calls posing as IRS agents in hopes of stealing taxpayer money or personal information. Tax Tip 2022-15, Taxpayers beware: Tax season is prime time for phone scams IRS, Security Summit partners remind families to make online safety a priority during National Cybersecurity Month During National Cybersecurity Month, the Internal Revenue Service and its Security Summit partners urge families to remain vigilant year-round and consider taking additional steps to protect their personal informationPDF. Parents, families and others should be mindful of the potential dangers in sharing devices at home, shopping online and using social media. IR-2022-187, During National Cybersecurity Month, IRS and Security Summit Partners offer tips Charity Fraud Information The Internal Revenue Service joined international efforts to fight charity fraud during Charity Fraud Awareness Week, October 17-21, 2022. The IRS partners in this effort with charities, regulators, agencies, law enforcement and other not-for-profit stakeholders around the world to raise awareness about fraud and cybercrime that affects charities. IR-2022-180, IRS joins effort to fight charity fraud during international recognition week Beware of OIC Mills – avoid costly promoters advertising settlement with the IRS for “pennies-on-the-dollar” The IRS reminds taxpayers to beware of promoters claiming their services are needed to settle with the IRS, that their debts can be settled for “pennies-on-the-dollar” or that there is a limited window of time to resolve tax debts through the Offer in Compromise (OIC) program. These promoters are often referred to as “OIC Mills.” Find information on OIC Mills in the news release IRS "Dirty Dozen" list warns people to watch out for tax-related scams involving fake charities, ghost preparers and other schemes. Scam targets educational institutions, including students and staff The Internal Revenue Service warned of an ongoing IRS-impersonation scam that appears to primarily target educational institutions, including students and staff who have ".edu" email addresses. IR-2021-68, IRS warns university students and staff of impersonation email scam Tax Tip 2021-42, University students and staff should be aware of IRS impersonation email scam Taxpayers should be on the lookout for new version of SSN scam In the latest twist on a scam related to Social Security numbers, scammers claim to be able to suspend or cancel the victim’s SSN. It’s yet another attempt by con artists to frighten people into returning ‘robocall’ voicemails. Identity theft and unemployment benefits Because of the pandemic, millions of Americans lost jobs permanently or temporarily in 2020 and received unemployment benefits issued by state agencies. However, in some cases, criminals sought to exploit the situation, filing for fraudulent unemployment benefits using stolen identities. Because unemployment benefits are taxable income, states issue Forms 1099-G, Certain Government Payments, to recipients and to the IRS to report the amount of taxable compensation received and any withholding. Box 1 on the form shows "Unemployment Compensation." Taxpayers who received a Form 1099-G for 2020 unemployment compensation that they did not receive should take the steps outlined at Identity Theft and Unemployment Benefits. COVID Tax Tip 2021-24, People should be on the lookout for identity theft involving unemployment benefits Scams related to natural disasters The IRS reminds taxpayers that criminals and scammers try to take advantage of the generosity of taxpayers who want to help victims of major disasters. See: How to avoid fraud and scams after a disaster IRS launches International Charity Fraud Awareness Week IRS warns of scams related to natural disasters Security Summit warns of new IRS impersonation email scam; reminds taxpayers the IRS does not send unsolicited emails The IRS and its Security Summit partners today warned taxpayers and tax professionals about a new IRS impersonation scam campaign spreading nationally on email. IRS reminder: Tax scams continue year-round As the new year begins, the IRS reminds taxpayers to protect their personal and financial information throughout the year and watch out for IRS impersonation scams, along with other schemes, that try to trick people out of their hard-earned money. IRS warns of new phone scam using Taxpayer Advocate Service numbers The IRS warns the public about a new twist on the IRS impersonation phone scam whereby criminals fake calls from the Taxpayer Advocate Service. See also: IRS, Security Summit Partners warn of new twist on phone scam; crooks direct taxpayers to IRS.gov to “verify” calls IRS Warning: Don’t be a victim of "ghost" tax return preparers IRS, Summit Partners warn on tax deadline scams, "IRS Refunds" email Scam Alert: IRS urges taxpayers to watch out for erroneous refunds; Beware of fake calls to return money to a collection agency IRS: Don’t be victim to a "ghost" tax return preparer The IRS warns taxpayers to avoid unethical tax return preparers, known as ghost preparers. A ghost preparer is someone who doesn't sign tax returns they prepare. Not signing a return is a red flag that the paid preparer may be looking to make a quick profit by promising a big refund or charging fees based on the size of the refund. IRS warns of “Tax Transcript” email scam; dangers to business networks The IRS and Security Summit partners today warned the public of a surge of fraudulent emails impersonating the IRS and using tax transcripts as bait to entice users to open documents containing malware. IRS-Impersonation Telephone Scams A sophisticated phone scam targeting taxpayers, including recent immigrants, has been making the rounds throughout the country. Callers claim to be IRS employees, using fake names and bogus IRS identification badge numbers. They may know a lot about their targets, and they usually alter the caller ID to make it look like the IRS is calling. Victims are told they owe money to the IRS and it must be paid promptly through a gift card or wire transfer. Victims may be threatened with arrest, deportation or suspension of a business or driver’s license. In many cases, the caller becomes hostile and insulting. Victims may be told they have a refund due to try to trick them into sharing private information. If the phone isn't answered, the scammers often leave an “urgent” callback request. Please See: Consumer Alert: Scammers Change Tactics, Once Again Some thieves have used video relay services (VRS) to try to scam deaf and hard of hearing individuals. Taxpayers are urged not trust calls just because they are made through VRS, as interpreters don’t screen calls for validity. For details see the IRS video: Tax Scams via Video Relay Service. Limited English Proficiency victims are often approached in their native language, threatened with deportation, police arrest and license revocation, among other things. IRS urges all taxpayers caution before paying unexpected tax bills. Please see: IRS Alerts Taxpayers with Limited English Proficiency of Ongoing Phone Scams. Note that the IRS doesn't: Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail you a bill if you owe any taxes. Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying. Demand payment without giving you the opportunity to question or appeal the amount they say you owe. Ask for credit or debit card numbers over the phone. Scams Targeting Tax Professionals Increasingly, tax professionals are being targeted by identity thieves. These criminals – many of them sophisticated, organized syndicates - are redoubling their efforts to gather personal data to file fraudulent federal and state income tax returns. The Security Summit has a campaign aimed at tax professionals: Protect Your Clients; Protect Yourself. IRS, Summit partners urge tax pros this summer to take actions to prevent data theft "Protect Your Clients; Protect Yourself — Summer 2022" campaign focuses on a reminder for tax pros to focus on fundamentals and to watch out for emerging vulnerabilities being seen for those practitioners using cloud-based services for their practice. IR-2022-140, Security Summit: Identity Protection PINs provide an important defense against tax-related identity theft IR-2022-135, IRS Security Summit renews warnings for tax pros to guard against identity theft amid continued threats Latest spearphishing scams target tax professionals The IRS, state tax agencies and tax industry warn tax professionals of new email scams that attempt to steal their tax software preparation credentials. Thieves try to steal client data and tax preparers' identities in an attempt to file fraudulent tax returns for refunds. IRS, Summit partners issue urgent EFIN scam alert to tax professionals The IRS, state tax agencies and tax industry warns tax professionals of a new scam email that impersonates the IRS and attempts to steal Electronic Filing Identification Numbers (EFINs). These thieves try to steal client data and tax preparers’ identities that will allow them to file fraudulent tax returns for refunds. IRS, Security Summit partners warn tax professionals of fake payroll direct deposit and wire transfer emails. IRS warns tax pros of new scam posing as professional associations. Tax professionals urged to step up security as filing scheme emerges. Tax professionals should review Publication 4557, Safeguarding Taxpayer Data, A Guide for Your BusinessPDF, which provides a checklist to help safeguard information and enhance security. See also: Identity Theft Information for Tax Professionals. Soliciting Form W-2 information from payroll and human resources professionals The IRS has established a process that will allow businesses and payroll service providers to quickly report any data losses related to the W-2 scam currently making the rounds. If notified in time, the IRS can take steps to prevent employees from being victimized by identity thieves filing fraudulent returns in their names. There also is information about how to report receiving the scam email. Report these schemes Email [email protected] to notify the IRS of a W-2 data loss and provide contact information. In the subject line, type “W2 Data Loss” so that the email can be routed properly. Do not attach any employee personally identifiable information. Email the Federation of Tax Administrators at [email protected] to learn how to report victim information to the states. Businesses/payroll service providers should file a complaint with the FBI’s Internet Crime Complaint Center (IC3.gov). Businesses/payroll service providers may be asked to file a report with their local law enforcement. Notify employees so they may take steps to protect themselves from identity theft. The FTC’s www.identitytheft.gov provides general guidance. Forward the scam email to [email protected]. See more details at Form W-2/SSN Data Theft: Information for Businesses and Payroll Service Providers. Employers are urged to put protocols in place for the sharing of sensitive employee information such as Forms W-2. The W-2 scam is just one of several new variations that focus on the large-scale thefts of sensitive tax information from tax preparers, businesses and payroll companies. Tax professionals who experience a data breach also should quickly report the incident to the IRS. See details at Data Theft Information for Tax Professionals. Also see: IRS, States and Tax Industry Warn Employers to Beware of Form W-2 Scam; Tax Season Could Bring New Surge in Phishing Scheme IRS, States and Tax Industry Renew Alert about Form W-2 Scam Targeting Payroll, Human Resource Departments IRS Alerts Payroll and HR Professionals to Phishing Scheme Involving W-2s Surge in Email, Phishing and Malware Schemes Schemes Phishing (as in “fishing for information”) is a scam where fraudsters send e-mail messages to trick unsuspecting victims into revealing personal and financial information that can be used to steal the victims’ identity. The IRS has issued several alerts about the fraudulent use of the IRS name or logo by scammers trying to gain access to consumers’ financial information to steal their identity and assets. Scam emails are designed to trick taxpayers into thinking these are official communications from the IRS or others in the tax industry, including tax software companies. These phishing schemes may seek information related to refunds, filing status, confirming personal information, ordering transcripts and verifying PIN information. Be alert to bogus emails that appear to come from your tax professional, requesting information for an IRS form. IRS doesn’t require Life Insurance and Annuity updates from taxpayers or a tax professional. Variations can be seen via text messages. The IRS is aware of email phishing scams that include links to bogus web sites intended to mirror the official IRS website. These emails contain the direction “you are to update your IRS e-file immediately.” These emails are not from the IRS. The sites may ask for information used to file false tax returns or they may carry malware, which can infect computers and allow criminals to access your files or track your keystrokes to gain information. Unsolicited email claiming to be from the IRS, or from a related component such as EFTPS, should be reported to the IRS at [email protected]. For more information, visit the IRS's Report Phishing webpage. Fraudsters Posing as Taxpayer Advocacy Panel Some taxpayers receive emails that appear to be from the Taxpayer Advocacy Panel (TAP) about a tax refund. These emails are a phishing scam, trying to trick victims into providing personal and financial information. Do not respond or click any link. If you receive this scam, forward it to [email protected] and note that it seems to be a scam phishing for your information. TAP is a volunteer board that advises the IRS on systemic issues affecting taxpayers. It never requests, and does not have access to, any taxpayer’s personal and financial information. Related Information Other recent tax scams Tell-tale signs of identity theft Security Summit: Tell-tale signs of identity theft tax pros should watch for Evolving email and cloud-based schemes to steal taxpayer data Security Summit warns tax pros of evolving email and cloud-based schemes to steal taxpayer data Latest spear phishing scams Latest spear phishing scams target tax professionals International Fraud Awareness Week A Message from James C. Lee, Chief Criminal Investigation IRS Criminal Investigation Marks International Fraud Awareness Week Highlighting Successes from FY20 In recognition of International Fraud Awareness Week, the IRS is highlighting the many successes in combating fraud and protecting taxpayers. This year was different as half of the year was spent under the new realities that COVID-19 has brought us. Through all the COVID challenges, the IRS was still able to attain many results. For example, we opened more investigations in FY20 than we did in FY19 in most of our program areas, our conviction rate is still the highest in federal law enforcement, and we are the go-to agency for complex financial investigations in the world. A Message from Damon Rowe, Executive Director, IRS Office of Fraud Enforcement Observing International Fraud Awareness Week As part of a continuing focus on tax compliance issues, the IRS created the Office of Fraud Enforcement to support IRS efforts to detect and deter fraud while strengthening the national fraud program. In observation of International Fraud Awareness Week, we will promote the incredible investment the IRS has made in the area of fraud enforcement. This week, we will take part in a global effort to minimize the impact of fraud, including tax fraud, by promoting fraud awareness and education. The IRS's efforts to combat tax and other financial fraud help protect taxpayers around the world and highlight how important fraud prevention is to society. How to report tax-related schemes, scams, identity theft and fraud To report tax-related illegal activities, refer to Tax Scams - How to Report Them. You should also report instances of IRS-related phishing attempts and fraud to the Treasury Inspector General for Tax Administration at 800-366-4484. Taxpayers who experience tax-related identity theft may wonder when they should file a Form 14039, Identity Theft Affidavit. When to file a Form 14039, Identity Theft Affidavit Additional scam-related information Security Summit - Learn more about how the IRS, representatives of the software industry, tax preparation firms, payroll and tax financial product processors and state tax administrators are working together to combat identity theft and refund fraud. Taxes-Security-Together - We all have a role to play in protecting your data National Tax Security Awareness Week 2022 Tax Scams — How to Report Them Criminal Investigation's Tax Fraud Alerts State ID Theft Resources - State information on what to do if you or your employees are victims of identity theft. IRS Dirty Dozen – The annually compiled list enumerates a variety of common scams that taxpayers may encounter. IRS YouTube videos Tax Scams via Video Relay Service in ASL
