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If you are a tax professional or business, you are vulnerable to identity thieves who may target your client’s sensitive information. According to the IRS, this is an ongoing concern, and every year, they compile an updated list noting 12 tax scams. The importance of proceeding cautiously cannot be overstated, and the IRS refers to this list as the “Dirty Dozen.”
Spear Phishing
This tactic is used by scammers to email or text you or your employees with the sole goal of gaining access to and stealing your company’s client data by manipulating you to click on a link or an attachment within the email or text message.
Officially referred to as spear phishing, these cyberattacks are carried out via identity thieves who co-opt your company’s client information and the identity of whoever is preparing the taxes. Once the thieves have this information, they then turn around and file counterfeit tax returns.
These spear phishing scammers target your company disguised as a tax preparation application, e-service or platform. They are often convincing, using legitimate-looking content, including using the IRS logo. They also rely on a sense of urgency; for example, the email or text may say, “Action Required: Your account has now been put on hold.” Using this tactic is designed to stress you so much that you click on the attached link or enter or verify information. Additional spear-fishing tactics may also include emails that seem official that target your payroll or accounting department and ask for forms such as W-2s or Wage and Tax Statements for your employees.
Protect Your Business From Scammers
The good news is there are some effective ways for you to avoid becoming a victim of deceptive spear phishing. According to the IRS, you should always use a two-person review process whenever you get these kinds of emails requesting your W-2 forms. They also advise making it mandatory for payroll requests to be submitted through official procedures, such as having them go through your human resources portal.
The IRS asserts that your company’s sensitive information is extremely valuable to scammers wanting to steal your identity and file fraudulent tax returns. As a tax professional or business, it pays to be hypervigilant when it comes to opening emails or text messages, clicking on any attached links, and then sharing sensitive client information. This protective strategy will help protect your tax business and your clients!
Additional “Dirty Dozen” IRS Warnings
-Inaccurate or misleading tax information on social media suggesting taxpayers submit false or inaccurate information for the sole purpose of claiming a fraudulent refund, using Form W-2, Form 8944, or Preparer e-file Hardship Waiver Request.
-Schemes targeting wealthy taxpayers (sold by questionable tax practitioners and independent promoters) abusing charitable remainder annuity trusts (CRATs) and monetized installment sales.
-Offer-in-compromise (OIC) mills used by OIC promoters seeking to mislead taxpayers into believing they can settle a tax debt cheaply and are targeted via television or radio ads. These charge high fees for information that taxpayers can actually get by themselves, even when the taxpayer does not meet the requirements for the offer (eligibility can be determined for free using the IRS’s Offer in Compromise Pre-Qualifier tool).
-Abusive tax-avoidance schemes. According to the IRS, fraudulent tax schemes can involve syndicated conservation easements and micro-captive insurance arrangements to lower taxes or allow the filer to avoid paying taxes altogether.
-International schemes that hide assets in offshore accounts and accounts holding digital assets (cryptocurrency). U.S. taxpayers are obliged to pay taxes on their worldwide income unless they can have a statutory or treaty exemption.
Corporate Capital Is Here for You
Our Corporate Capital professionals are pleased to provide tax consulting and preparation through a Certified CPA and accredited IRS tax accountant. Our goal is to make sure your business remains compliant and retains a corporate status. Our team is current on all IRS tax laws so you can get the most accurate and beneficial information out there.
If you are looking for help keeping your books and tax records in order, please call our office at 855-371-0070 today and start forming your tax strategies. https://www.corporatecapitalinc.com/managing-a-business/tax-strategies/Â
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