The Internal Revenue Service and its Security Summit partners have announced the return of their annual summer campaign, “Protect Your Clients; Protect Yourself.” This campaign aims to help tax professionals and taxpayers safeguard sensitive data against tax-related identity theft and maintain trust in the tax system amidst an increasingly complex threat environment. Now in its 10th year, this initiative comes as new scams continue to emerge across the tax landscape.
Campaign Highlights
The campaign features a series of five news releases, published every other Tuesday, coinciding with the IRS Nationwide Tax Forums that began on July 1 in Chicago. These releases will provide actionable guidance for tax professionals to protect their clients and themselves from data theft. IRS Commissioner Billy Long emphasized the significance of this effort, stating, “This effort is a testament to what can be accomplished when business and government work together to educate the taxpayer and raise awareness of this wide-ranging problem.”
In the press release, Sharonne Bonardi, executive director of the Federation of Tax Administrators, echoed this sentiment, highlighting the importance of protecting taxpayers and the integrity of the revenue system. Julie Magee, Tax Policy Lead at Cash App Taxes, added that real-time collaboration between tax professionals, software providers, and tax administrators is critical to curtailing scams.
New and Evolving Schemes
The campaign’s first week sheds light on new and evolving schemes to steal sensitive information from tax professionals, as identity thieves use increasingly sophisticated tactics. These include:
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“New client.” Fraudsters impersonate legitimate taxpayers seeking tax preparation services.
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Phishing attempts for identification numbers. Particularly widespread are phishing attempts targeting professionals’ credentials, such as: Electronic Filing Identification Numbers, Preparer Tax Identification Numbers and Centralized Authorized File numbers.
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Communication-based scams. Some highlights include: The “Zero Tax” program, which falsely promises to eliminate tax debt while stealing Social Security numbers; social media scams that spread inaccurate tax information, including falsified tax documents and improper credit claims, such as claiming credits to which the taxpayer isn’t entitled; phone and text message schemes that request sensitive financial information under false pretenses; and AI-generated fake IRS letters mailed to victims.
Tax professionals should be on high alert for such scams and warn clients to be vigilant.
Responding to Security Breaches
Tax professionals who suspect they’re victims of a security breach should take immediate action:
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Contact the IRS stakeholder liaison: Reporting incidents promptly allows the IRS to block fraudulent returns and assist affected professionals.
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Report to state tax agencies: Use the Federation of Tax Administrators’ “Report a Data Breach” page to share information with state authorities.
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Follow FTC guidelines: Adhere to the Federal Trade Commission’s Data Breach Response requirements as part of a comprehensive security plan.
Upcoming Topics
The summer series will continue with four additional releases, each addressing critical aspects of data security:
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Week Two: Phishing, spear phishing, whaling and the “Security Six” protections.
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Week Three: Developing a written information security plan to safeguard client and business data.
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Week Four: Tools for protection, including multi-factor authentication, IP PINs, IRS online accounts and tax pro accounts.
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Week Five: Recognizing signs of identity theft and reporting incidents.
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