The Internal Revenue Service (IRS) in the United States, in collaboration with partners of the Security Summit, recently announced the commencement of the “10th National Tax Security Awareness Week” to enhance Americans’ self-protection awareness and assist them in avoiding identity theft and scams during the upcoming tax season.
The Security Summit is an alliance composed of the IRS, state tax authorities, tax software companies, tax professional groups, and other stakeholders in the tax industry. Its mission is to combat tax-related identity theft through public-private cooperation, strengthen internal protections, share information on fraudsters, and increase public awareness of security threats. Since its establishment, the Security Summit has been successful in assisting millions of taxpayers in avoiding harm from identity theft and preventing billions of dollars from being erroneously paid to fraudsters.
IRS Commissioner Frank Bisignano, who also serves as the Social Security Administration Commissioner, emphasized the importance of taxpayers and tax professionals taking extra measures to safeguard their financial and tax information as the holiday shopping season approaches and tax filing season nears.
During the holiday period, the risk of identity theft increases as criminals employ various tactics to lure individuals into disclosing sensitive personal information. These thieves may use this information to file fraudulent tax returns and steal refund money.
While the IRS and its Summit partners strengthen their defenses, identity thieves increasingly target taxpayers, businesses, and tax professionals to steal foundational tax and financial information, hoping to evade IRS defenses by utilizing seemingly authentic tax returns.
Scammers often impersonate the IRS and other tax agencies, engaging in online scams through fraudulent emails and text messages. These schemes often exploit recent tragic events or impersonate charitable organizations, tricking individuals into revealing sensitive financial data, leading to tax-related identity theft.
Fraudsters also provide inaccurate tax advice on social media, misleading taxpayers and causing misunderstandings about their eligibility for tax deductions or refunds. Some influencers may encourage taxpayers to lie on their tax returns or imply that the IRS is withholding information on tax credits.
Criminals frequently engage in phishing emails and smishing texts to deceive taxpayers into making payments, thereby stealing personal and financial information. Clicking on links and attachments provided by criminals may also compromise personal computers.
Scammers often target individuals aged 65 and older or nearing retirement, deceiving them into disclosing personal or financial information and money. Once elderly individuals give them money, scammers may escalate their tactics, even persuading some seniors to withdraw funds from retirement accounts.
To address these issues, the IRS and its Security Summit partners have established the Coalition Against Scam and Scheme Threats, which will intensify efforts during the upcoming tax season.
The IRS has also collaborated with the Security Summit to develop the Identity Theft Information Sharing and Analysis Center to better identify and coordinate efforts to combat scammers. Given that scammers frequently target sensitive tax information of tax professionals and their clients, the IRS continues to remind tax professionals of their legal obligation to develop written information security plans and utilize multi-factor authentication.
Additionally, the IRS recommends that businesses update security measures, remain vigilant, and ward off cyber attacks.
Taxpayers are advised to protect their Identity Protection PIN, a six-digit number used to prevent others from using their Social Security number or Individual Taxpayer Identification Number to file tax returns. If taxpayers have not set up an Identity Protection PIN, they can proactively request one to prevent tax-related identity theft. Anyone with a Social Security number or ITIN can apply for the Identity Protection PIN, including individuals residing abroad.
For more information on preventing tax information theft, visit the Security Summit website. Victims of identity theft can visit the Identity Theft Central website.
For additional information, visit the Tax Scams page, follow the IRS on social media, or consult tax professionals at the IRS Taxpayer Assistance Center.