Have you ever received a text message demanding immediate tax payment or an email from the Internal Revenue Service threatening to close your business? Or has a friendly IRS representative ever requested payment for back taxes using gift cards? The answer is no, at least not legitimately. But that does not mean businesses across the United States have not fallen victim to tax season scams that use these methods.
Ready to protect your business? Today’s post highlights the most common tax season scams.
Phone Impersonation
Fraudsters often pretend to be the IRS using phone calls, emails, and text messages. They may claim that your business owes back taxes and offer to reduce the amount if you pay immediately using gift cards or cryptocurrency.
The IRS does not initiate contact by email, text, or social media. If there is a legitimate issue, the IRS will contact you by mail. Any other contact method is a red flag.
Payroll Data Theft
A scammer may impersonate a CEO or HR manager and email the payroll or accounting department requesting information or direct copies of employee W-2 forms. These emails often appear legitimate and may reference discrepancies that require a quick review. The request is usually urgent. Criminals then use stolen W-2 forms to file fraudulent tax returns or commit identity theft.
Red flags include emails that look legitimate but do not come from a verified or known email address, an urgent tone, and requests to send sensitive information by email instead of providing it in person or through a secure system.
Business Email Compromise
Business email compromise scams are not exclusive to tax season, but they often increase during this time. Someone impersonating an accountant or CPA may request changes to vendor banking information or send fake tax payment instructions. Business email compromise scams cost businesses billions of dollars each year.
Red flags include sudden requests to change bank account information, slightly altered email domains, and payment instructions sent only by email.
Protect Your Business
Stay alert during every tax season. Never share sensitive information by email without verification, and ensure your business is protected with firewalls, filters, and other IT security measures. If you are unsure how secure your systems are against tax season scams, contact ITC for information on how partnering with a trusted managed IT firm can help keep your business protected through April 15 and beyond.
