The following information details the list as announced by the IRS. The official notice for this year’s “Dirty Dozen” can be found on the IRS website.

(1) Email Phishing Scams

The IRS continues to see a barrage of email and text scams targeting taxpayers and others. Taxpayers and tax professionals should be alert to fake communications from entities posing as legitimate organizations in the tax and financial community, including the IRS, state tax agencies and tax software companies. These messages arrive in the form of unsolicited texts or emails to lure unsuspecting victims into providing valuable personal and financial information that can lead to identity theft. There are two main types:

• Phishing: An email sent by fraudsters claiming to come from the IRS. The email lures the victims into the scam with a variety of ruses such as enticing victims with a phony tax refund or threatening them with false legal or criminal charges for tax fraud.
• Smishing: A text or smartphone SMS message where scammers often use alarming language such as, “Your account has now been put on hold,” or “Unusual Activity Report,” with a bogus “Solutions” link to restore the recipient’s account. The promise of unexpected tax refunds is another potential tactic used by scam artists.

As a reminder, never click on any unsolicited communication claiming to be from the IRS as it may surreptitiously load malware. This may also be a way for malicious hackers to load ransomware that keeps the legitimate user from accessing their system and files.

The IRS has special information available to help people understand and report email scams.

(2) Bad Social Media Advice

Another growing concern in 2025 continues to involve incorrect tax information on social media that can mislead honest taxpayers with bad advice, potentially leading to identity theft and tax problems. Social media platforms routinely circulate inaccurate or misleading tax information, including on TikTok where people share wildly inaccurate tax advice. Some involve urging people to misuse common tax documents like Form W-2.

The IRS and CASST warn people not to fall for these scams, and urge them to follow trusted social media advice from the IRS, tax professionals and other reputable sources. The IRS reminds taxpayers who knowingly file fraudulent tax returns that they could potentially face significant civil and criminal penalties.

(3) IRS Individual Online Account Help from Scammers

Swindlers can pose as a “helpful” third party and offer to help create a taxpayer’s IRS Individual Online Account at IRS.gov. In reality, no help is needed, and the agency offers tips on how to sign up and avoid scams. The IRS Individual Online Account provides taxpayers with valuable personal tax information. But watch out: Third parties making these offers will try to steal a taxpayer’s personal information and try to submit fraudulent tax returns in the victim’s name to get a big refund.

(4) Fake Charities

Bogus charities are a perennial problem that can intensify whenever a crisis or natural disaster strikes. Scammers set up these fake organizations to take advantage of the public’s generosity. They seek money and personal information, which can be used to further exploit victims through identity theft.

Taxpayers who give money or goods to a charity might be able to claim a deduction on their federal tax return if they itemize deductions, but charitable donations only count if they go to a qualified tax-exempt organization recognized by the IRS.

(5) False Fuel Tax Credit Claims

A major concern during the past year involved taxpayers who were misled into believing they were eligible for the Fuel Tax Credit. The credit is meant for off-highway business and farming use and is not available to most taxpayers. However, unscrupulous tax return preparers and promoters, including people on social media, continue enticing taxpayers into inflating their refunds by erroneously claiming the credit. The IRS has seen an increase in the promotion of filing certain refundable credits using Form 4136, Credit for Federal Tax Paid on Fuels. The IRS urges people to get more information and ensure they are properly claiming this credit.

(6) Credits for Sick Leave and Family Leave

This specialized credit is available for self-employed individuals for 2020 and 2021 during the pandemic; the credit is not available for later tax years. The IRS is seeing repeated instances where taxpayers are using Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, to incorrectly claim a credit based on income earned as an employee and not as a self-employed individual.

(7) Bogus Self-Employment Tax Credit

Social media advice continues to circulate about a non-existent “Self-Employment Tax Credit” that’s misleading taxpayers into filing false claims. Promoters market it as a way for self-employed people and gig workers to get big payments for the COVID-19 pandemic period. Similar to misleading marketing around the Employee Retention Credit, there is inaccurate information being circulated that suggests many people qualify for the tax credit and payments of up to $32,000 when they actually do not.

In reality, the underlying credit being referred to in social media is not called the “Self-Employment Tax Credit,” it’s a much more limited and technical credit called the Credits for Sick Leave and Family Leave. Many people simply do not qualify for these credits, and the IRS is closely reviewing claims coming in under this provision, so taxpayers filing claims do so at their own risk.

(8) Improper Household Employment Taxes

Taxpayers “invent” fictional household employees and then file Schedule H (Form 1040), Household Employment Taxes, to claim a refund based on false sick and family medical leave wages they never paid.

(9) The Overstated Withholding Scam

This is a recent scheme circulating on social media encouraging people to fill out Form W-2, Wage and Tax Statement, or other forms like Form 1099-NEC and other 1099s with false income and withholding information.

In this overstated withholding scheme, scam artists suggest people make up large income and withholding amounts as well as the fictional employer supplying those amounts. Scam artists then instruct people to file the bogus tax return electronically in hopes of getting a substantial refund due to the large amount of fraudulent withholding.

If the IRS cannot verify the wages, income or withholding credits entered on the tax return, the tax refund will be held pending further review. Taxpayers should always file a complete and accurate tax return. They should only use legitimate information returns, such as an employer issued Form W-2, to complete returns correctly.

There are multiple variations of the overstated withholding credit scheme, including those involving Forms W-2 and W-2G; Forms 1099-R, 1099-NEC, 1099-DIV, 1099-OID and 1099-B; as well as the Alaskan Dividend Fund, Schedule K-1 with Withholding Reported, and Unspecified Source of Withholding Credit Claimed.

(10) Misleading Offers in Compromise

The Offers in Compromise (OIC) program is an important program that helps people settle their federal tax debts when they are unable to pay in full. But “mills” can aggressively promote Offers in Compromise in misleading ways to people who clearly don’t meet the qualifications, frequently costing taxpayers thousands of dollars. A taxpayer can check their eligibility for free using the IRS Offer in Compromise Pre-Qualifier tool.

(11) Ghost Tax Return Preparers

Most tax preparers provide outstanding and professional service. However, people should be careful of shady tax professionals and watch for common warning signs, including charging a fee based on the size of the refund. A major red flag or bad sign is when the tax preparer is unwilling to sign the return. Avoid these “ghost” preparers, who will prepare a tax return but refuse to sign or include their IRS Preparer Tax Identification Number (PTIN) as required by law. Taxpayers should never sign a blank or incomplete return. Instead, the IRS reminds taxpayers to turn to a trusted tax professional for help.

(12) New Client Scams and Spear Phishing

In 2025, the IRS continues to see the “new client” scam, which involves spear phishing attempts that target tax pros. Cybercriminals impersonate new, potential clients to trick tax professionals and other businesses into responding to their emails. Once the tax pro responds, the scammer sends a malicious attachment or URL that can compromise the preparer’s computer systems and allow the attacker to access sensitive client information.

Phishing is a term given to emails or text messages designed to get users to provide personal information, and spear phishing is a phishing attempt tailored to a specific organization or business. Tax professionals frequently find themselves a target of this type of scam. Spear phishing holds greater potential for harm because a successful spear phishing attack can ultimately steal client data and the tax pro’s identity, allowing the thief to file fraudulent returns using the stolen information.

Businesses and individuals, including tax pros, should always be cautious and look out for any suspicious requests or unusual behavior before sharing any sensitive information or responding to an email. Warning signs include poorly constructed sentences and unusual word choices. Be aware that by gaining access to a hacked email account, scammers can locate a genuine email from a previous victim’s email account sent to their tax professional.

The IRS emphasizes that beyond the “Dirty Dozen,” there are numerous other abusive schemes and false tax avoidance strategies that can be deceiving. For more information on past schemes, taxpayers can visit the dedicated “Dirty Dozen” section on IRS.gov. This list serves as a critical alert to both taxpayers and tax professionals about potential scams and schemes to watch out for.

For more information or to seek counsel from our Taxation group, please reach out to request a consultation or call us at 216-696-1422.

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Phishing & Impersonation Scams

Many scammers will attempt to reach out to you across all possible avenues. This includes phone calls, emails, text messages, and potentially even social media. They may contact you claiming to be with the Internal Revenue Service and request your private information or prompt payment. Do not provide any personal information requested through any of these methods of communication. It is important to be aware that the IRS will not initiate contact via unsolicited emails, text messages, or phone calls. Furthermore, the IRS will initiate most contact with you via mail.

Tax Identity Theft & Tax Refund Fraud

Identity theft is a major concern during the tax filing season. Those running tax-related scams may utilize stolen personal information to file fraudulent tax returns and claim the associated refunds. Especially during this season, you should regularly monitor all your accounts for suspicious activity. In the event you notice something that raises concern, be sure to report any irregular activity to the appropriate authorities.

Promise of an Inflated Refund

The IRS Criminal Investigation agency recommends that individuals refrain from employing tax preparers who guarantee substantial refunds to avoid being scammed. This promise of a large refund should serve as a red flag. To verify the legitimacy and ethical conduct of your tax preparer, the agency advises individuals to choose a reputable tax professional. The professional should sign and input a preparer tax identification number (PTIN) on the tax return and furnish a copy of the return for record-keeping purposes. Additionally, one should avoid signing a blank tax form at all costs.

Fraudulent Tax Software Programs

When filing your taxes, prior to engaging with a tax software platform, ensure it is legitimate. It’s best to stick to well-known, trusted, and accredited tax software providers. Scammers have been found to create fake platforms that mimic reputable services. Engaging with these fraudulent platforms exposes personal and financial information and can lead to your sensitive information being compromised.

As taxpayers head into the 2024 tax season, remaining informed about potential scams is pertinent for protecting one’s financial interests and security. Remain cautious and seek advice from reputable and experienced tax professionals. Remaining vigilant will allow taxpayers to confidently navigate the tax season and avoid falling prey to tax scams.

If you have any related questions or if you are uncertain about whether you have been scammed, it is advisable to call the Internal Revenue Service and notify the Better Business Bureau as both organizations are vigilant about handling matters pertaining to attempted fraud, in particular tax season scams.

To seek counsel from our taxation practice group, please reach out to request a consultation or call us at 216-696-1422.

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(1) Use of Charitable Remainder Annuity Trust (CRAT) to Eliminate Taxable Gain

In these transactions, taxpayers transfer appreciated property to a Charitable Remainder Annuity Trust. Then, a claim is made that the transfer of the appreciated assets gives those assets a step-up in basis to fair market value as if they had been sold to the trust. The CRAT sells the property but does not recognize gain due to the claimed step-up in basis. The proceeds are then used to purchase a single premium immediate annuity (SPIA). The beneficiary reports, as income, only a small portion of the annuity received from the SPIA and treats the remaining payment as an excluded portion representing a return of investment for which no tax is due. Taxpayers seek to achieve this inaccurate result my misapplying the rules under Internal Revenue Code Sections 72 and 664.

(2) Maltese (or Other Foreign) Pension Arrangements Misusing Treaty

U.S. citizens or U.S. residents attempt to avoid U.S. tax by making contributions to certain individual retirement arrangements in foreign nations. By improperly asserting the foreign arrangement is a “pension fund” for U.S. tax treaty purposes, the U.S. taxpayer misconstrues the relevant treaty to improperly claim an exemption from U.S. income tax on earnings in, and distributions from, the foreign arrangement.

(3) Puerto Rican and Other Foreign Captive Insurance

U.S. owners of closely held entities participate in a purported insurance arrangement with a Puerto Rican or other foreign corporation in which the U.S. owner has a financial interest. The U.S. entity claims deductions for the cost of “insurance coverage” provided by a fronting carrier, which reinsures the “coverage” with the foreign corporation.

(4) Monetized Installment Sales

The seller of a property, in the same year of the sale, enters into a contract to sell appreciated property to a buyer for cash and then purports to sell the same property to an intermediary in return for an installment note. The intermediary then purports to sell the property to the buyer and receives the cash purchase price. Through a series of related steps, the seller receives an amount equivalent to the sales price, less various transactional fees, in the form of a purported loan that is nonrecourse and unsecured.

(5) Pandemic-Related Scams

These types of scams include: 

(a) Economic Impact Payment and Tax Refund Scams

Identity thieves continue to try and use Economic Impact Payments (EIPs) as a way to scam taxpayers. The IRS will not initiate contact by phone, email, text or social media asking for personal or financial information related to Economic Impact Payments. The IRS has issued all EIPs, and most eligible recipients have already received their stimulus payments. The IRS warns taxpayers to watch out for any text messages, random incoming phone calls or emails inquiring about bank account information. Communications requesting recipients to click a link or verify data should be considered suspicious and deleted without opening. This includes not just stimulus payments, but tax refunds as well.

(b) Unemployment Fraud Leading to Inaccurate Taxpayer 1099-Gs

Because of the pandemic, many taxpayers lost their jobs and received unemployment benefits from their state. Scammers also took advantage of the pandemic by filing fraudulent claims for unemployment benefits using stolen personal information. Taxpayers should also be on the lookout for a Form 1099-G reporting unemployment compensation they didn’t receive. If you received an erroneous Form 1099-G, the IRS urges you to contact the appropriate state agency for a corrected form. Taxpayers should only complete their tax returns by claiming unemployment compensation and other income that they actually received.

(c) Fake Employment Offers Posted on Social Media

The pandemic created many newly unemployed people eager to seek new employment. Fake social media posts entice their victims to provide personal financial information in applying for employment.

(d) Fake Charities That Steal Your Money

The IRS warns that bogus charities are always a problem when there is a national crisis such as a pandemic. In order to receive a deduction, the taxpayer must donate to a qualified charity. The IRS provides the following tips about fake charity scams:

• Individuals should never let any caller pressure them. A legitimate charity will be happy to get a donation at any time, and will not rush you to make a donation.
• Potential donors should ask the fundraiser for the charity’s exact name, web address and mailing address, so it can be confirmed later. Some scammers use names that sound like large, well-known charities to confuse people.
• Be careful how a donation is paid. Donors should not make payments to charities by giving numbers from a gift card or by wiring money. It’s safest to pay by credit card or check — and only after having done some research on the charity.

(6) Offer in Compromise (OIC) Mills

These OIC “mills” make outlandish claims, usually using local advertising, claiming to settle a taxpayer’s tax debt for pennies on the dollar. Often, a taxpayer will pay these OIC mills a fee to get the same deal that the taxpayer would have gotten had he or she worked directly with the IRS. These scams often appear after filing season ends and when taxpayers are trying to resolve their tax issues after receiving a balance due notice in the mail.

(7) Communications Scams

Suspicious communications in all forms designed to either trick, surprise or scare someone into responding before thinking have found their place on the “Dirty Dozen” list many times. Victims are tricked into providing sensitive personal financial information, money or other information via bogus phone calls, texts, and emails. This can be used to file false tax returns and tap into financial accounts, among other schemes. The IRS (and its authorized private collection agencies) will never call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer.

(8) Spear Phishing

Spear phishing is an email scam that attempts to steal a taxpayer or tax professional’s software preparation credentials. These thieves try to steal client data and tax preparers’ identities in an attempt to file fraudulent tax returns for refunds. Emails claiming “Your account has been put on hold” are scams. Scammers may also pretend to be from a tax preparation website to send a fake link and obtain information.

(9) Concealing Assets Offshore and Improper Reporting of Digital Assets

U.S. persons are taxed on worldwide income. The mere fact that money is placed in an offshore account does not put it out of reach of the U.S. tax system. U.S. persons are required, under penalty of perjury, to report income from offshore funds and other foreign holdings. The IRS uses a variety of sources to identify promoters who encourage others to hide their assets overseas.

In addition, digital assets are being adopted by mainstream financial organizations along with many other parts of the economy. The proliferation of digital assets across the world has created tax administration challenges regarding digital assets, in part because there is an incorrect belief that digital asset accounts are undetectable by tax authorities. Scammers continue to perpetuate this myth and make assertions that taxpayers can easily conceal their digital asset holdings.

(10) High-Income Individuals Who Don’t File Tax Returns

High-Income individuals making more than $100,000 a year who fail to file tax returns are among the highest priority targets of IRS investigations. The Failure to File Penalty is initially much higher than the Failure to Pay Penalty. The IRS reminds those taxpayers who may be wrongly persuaded to not file a tax return that it is more advantageous to file an accurate return on time and set up a payment plan if needed than to not file.

(11) Abusive Syndicated Conservation Easements

In syndicated conservation easements, promoters take a provision of the tax law allowing for conservation easements and twist it to game the tax system with grossly inflated tax deductions and to generate high fees for promoters.

(12) Abusive Micro-Captive Insurance Arrangements

In abusive “micro-captive” structures, promoters, accountants, or wealth planners persuade owners of closely held entities to participate in schemes that lack many of the attributes of insurance. For example, coverages may “insure” implausible risks, fail to match genuine business needs or duplicate the taxpayer’s commercial coverages. The “premiums” paid under these arrangements are often excessive and are used to skirt the tax law.

For more information or assistance regarding the 2022 “Dirty Dozen” tax scams, please reach out to request a consultation or call us at 216-696-1422.

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• The Department will NOT send emails with links directing you to download and install software.
• The Department will NOT request detailed personal information through email.
• The Department will NOT send email requesting you to respond by providing your user ID, password, or financial information such as details of accounts or credit cards.

The Department advises that if you receive a suspicious email, take the following steps to protect yourself:

• Do not reply.
• Do not open any attachments, as they could infect your computer.
• Do not click on any links. If you have clicked on links in a suspicious email or website and entered confidential information, visit the Federal Trade Commission website (www.ftc.gov) and review the commission’s information on identity theft.
• Forward the suspicious email to fraud@tax.state.oh.us for investigation, then be sure to delete the email.

There are various ways to spot a suspicious email.  Look for an email address with domain names that do not appear to be associated with the organization the email is supposed to be from.  For example, Official Department of Taxation communications will not be issued from a public domain email account such as thief@gmail.com or crook@yahoo.com.  Additionally, look for links in the email that do not match the Web address that you intend to visit.  For example, if you hover your mouse cursor over a link in an email, the Web address (or URL) that is displayed should match the link referenced in the email message.

Taxpayers should beware of emails that threaten loss of service if you do not respond by a certain date.  For example: “Your account will not be valid after June 1 if you do not follow the instructions in this email.”  Taxpayers should also beware of emails that ask you to supply confidential information, such as account numbers, passwords, credit card numbers, etc.  Finally, taxpayers should beware of emails that ask to install software by clicking on a link the email message.

If you are unsure whether an email you received is valid or not, call the Department directly to confirm that you were contacted by email.  If you have already been the victim of fraud via a fake email from the Department, contact local law enforcement to file an incident report.  For more information on these email scams, visit www.tax.ohio.gov.

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The IRS advises that taxpayers should be aware of the following information:

• The IRS will not call, email, or text you to verify or obtain financial, banking, and personal information. Do not provide financial or personal information or engage with potential scammers either online or over the phone.
• Be wary of websites and social media sites that request money or personal information.
• Do no open unrecognized emails that appear to be from the IRS or click on any embedded links or attachments.
• Forward suspicious emails to phishing@irs.gov and then delete such emails.

Taxpayers should also know the following about the Economic Impact Payments:

• The IRS will automatically deposit Economic Impact Payments into taxpayers’ bank accounts provided on their 2019 or 2018 tax return for direct deposit of their tax refund.
• Taxpayers without a direct deposit account on file can provide their information online through the IRS’s secure “Get My Payment” website, located at https://www.irs.gov/coronavirus/get-my-payment.
• Taxpayers eligible for an Economic Impact Payment who do not provide direct deposit information will receive a payment mailed to the last address the IRS has on file.
• The IRS does not charge a fee to issue the payment.

Finally, the IRS warns that scammers may do any of the following:

• Ask a taxpayer to sign over his or her Economic Impact Payment check to them;
• Ask for verification of personal and banking information;
• Suggest that the taxpayer can receive his or her tax refund or Economic Impact Payment check faster by working with them; or
• Issue a fraudulent check, often for an odd amount, and then have the taxpayer call to verify personal and financial information in order to cash the check.

Information from the IRS regarding the COVID-19 pandemic and Economic Impact Payments can be found at https://www.irs.gov/coronavirus-tax-relief-and-economic-impact-payments.  The IRS urges taxpayers to share this information with family and friends in order to be on the lookout for potential Coronavirus-related scams.

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WASHINGTON — The Internal Revenue Service today urged taxpayers to be on the lookout for a surge of calls and email phishing attempts about the Coronavirus, or COVID-19. These contacts can lead to tax-related fraud and identity theft.

“We urge people to take extra care during this period. The IRS isn’t going to call you asking to verify or provide your financial information so you can get an economic impact payment or your refund faster,” said IRS Commissioner Chuck Rettig. “That also applies to surprise emails that appear to be coming from the IRS. Remember, don’t open them or click on attachments or links. Go to IRS.gov for the most up-to-date information.”

Taxpayers should watch not only for emails but text messages, websites, and social media attempts that request money or personal information.

“History has shown that criminals take every opportunity to perpetrate a fraud on unsuspecting victims, especially when a group of people is vulnerable or in a state of need,” said IRS Criminal Investigation Chief Don Fort. “While you are waiting to hear about your economic impact payment, criminals are working hard to trick you into getting their hands on it. The IRS Criminal Investigation Division is working hard to find these scammers and shut them down, but in the meantime, we ask people to remain vigilant.”

Don’t fall prey to Coronavirus tricks; retirees among potential targets
The IRS and its Criminal Investigation Division have seen a wave of new and evolving phishing schemes against taxpayers. In most cases, the IRS will deposit economic impact payments into the direct deposit account taxpayers previously provided on tax returns. Those taxpayers who have previously filed but not provided direct deposit information to the IRS will be able to provide their banking information online to a newly designed secure portal on IRS.gov in mid-April. If the IRS does not have a taxpayer’s direct deposit information, a check will be mailed to the address on file. Taxpayers should not provide their direct deposit or other banking information for others to input on their behalf into the secure portal.

The IRS also reminds retirees who don’t normally have a requirement to file a tax return that no action on their part is needed to receive their $1,200 economic impact payment. Seniors should be especially careful during this period. The IRS reminds retirees – including recipients of Forms SSA-1099 and RRB-1099 −  that no one from the agency will be reaching out to them by phone, email, mail or in person asking for any kind of information to complete their economic impact payment, also sometimes referred to as rebates or stimulus payments. The IRS is sending these $1,200 payments automatically to retirees – no additional action or information is needed on their part to receive this.

The IRS reminds taxpayers that scammers may:

• Emphasize the words “Stimulus Check” or “Stimulus Payment.” The official term is economic impact payment.
• Ask the taxpayer to sign over their economic impact payment check to them.
• Ask by phone, email, text or social media for verification of personal and/or banking information saying that the information is needed to receive or speed up their economic impact payment.
• Suggest that they can get a tax refund or economic impact payment faster by working on the taxpayer’s behalf. This scam could be conducted by social media or even in person.
• Mail the taxpayer a bogus check, perhaps in an odd amount, then tell the taxpayer to call a number or verify information online in order to cash it.

Reporting Coronavirus-related or other phishing attempts
Those who receive unsolicited emails, text messages or social media attempts to gather information that appear to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), should forward it to phishing@irs.gov.

Taxpayers are encouraged not to engage potential scammers online or on the phone. Learn more about reporting suspected scams by going to the Report Phishing and Online Scams page on IRS.gov.

Official IRS information about the COVID-19 pandemic and economic impact payments can be found on the Coronavirus Tax Relief page on IRS.gov. The page is updated quickly when new information is available.

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The Internal Revenue Service (IRS) is warning taxpayers and tax professionals about a national scam regarding fraudulent IRS impersonations using emails. “The IRS does not send emails about your tax refund or sensitive financial information,” said IRS Commissioner Chuck Rettig. “This latest scheme is yet another reminder that tax scams are a year-round business for thieves. We urge you to be on-guard at all times.”

The IRS said that unsolicited emails have been linked to multiple websites that mirror the official IRS website which is IRS.gov. The emails include details pretending to be about taxpayer refunds, electronic returns or tax accounts. The emails also contain a “temporary password” or a “one-time password” to which you are urged to enter in a response to the fake IRS email.  Your response then enables the computer hackers to insert a malicious file into your computer.  The malicious files or “malware” infect computers once users have accessed them and then the imposters may gain control of the taxpayer’s computer or secretly download software that tracks every keystroke, which gives them passwords to sensitive accounts such as financial accounts.

Please remember the following if you should receive such an email claiming to be from the IRS:

• The IRS does not send unsolicited emails and never emails taxpayers about the status of
• The IRS doesn’t initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. This contact includes but is not limited to: requests for PIN numbers, passwords, or similar access information for credit cards, banks or other financial accounts
• The IRS will generally first mail a bill to any taxpayer who owes taxes
• The IRS does not call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer

Please contact our tax attorneys at 216-696-1422 if you have any concerns regarding suspect communications by IRS imposters.

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This most recent scam seems to be having success against businesses where employees are easily duped into opening insidious email attachments that launch malware into computer networks. The cybercriminals are currently using a well-known malware variant called Emotet to perpetuate their schemes. The cybercriminals have been presenting themselves as “IRS Online” and send an email attachment called “tax account transcripts,” or some derivation thereof, to unsuspecting victims. The email subject line refers to the same type of information, all in attempts to invite users to click on the email. Once the virus is launched, it may do tremendous damage to computer systems and may cost thousands of dollars to repair.

The IRS constantly reminds taxpayers that it does not send unsolicited emails, does not email tax transcripts or other sensitive documents with taxpayer information, nor calls taxpayers. Do not open unsolicited emails from anyone purporting to be the IRS or respond to phone calls from anyone purporting to be an IRS representative. If you receive one of these scam emails, you may forward it to phishing@irs.gov. Also, notify your company’s computer security resources immediately.

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The IRS has made clear that only special circumstances necessitate calls to a home or business, and that most often, regular mail is used to initiate contact with a taxpayer. Making threats and demands over the phone is not characteristic of the IRS. This has been reiterated by the IRS on numerous occasions, yet phone customers continue to be victimized by scammers purporting to be IRS representatives. Modern technology allows scammers to spoof, or mimic actual IRS phone numbers, which has fooled countless taxpayers into believing they are actually being contacted by the IRS.

What’s more troubling, is that in the aftermath of a natural disaster, scammers have been known to increase their efforts hoping to exploit the generosity of those wanting to help. Usually, these scams take the form of a phone call wherein donations are solicited by a phony or impersonated charity. Sometimes these scammers may claim to work for, or on behalf of the IRS. By purporting to be a charitable organization, scammers may promise tax incentives in exchange for a donation. The IRS recently issued a memorandum following Hurricane Florence urging taxpayers to exercise caution when fielding phone calls from purported “charities.”

If you receive a call from an unknown number, remember that the IRS rarely calls individuals and be wary of any threats or demands. The IRS advises that you should never give out personal or financial information over the phone, including your Social Security number or credit card information. In the event you receive a request over the phone and are unsure of its validity, simply ask that they follow up with a written letter containing all the details.

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