Although the tax filing season has passed and those who filed for extensions still have until October 15 to complete their filings, the Internal Revenue Service (IRS) has joined the Security Summit to inform tax professionals and taxpayers to watch out for phishing emails (fraud) and other schemes designed to steal taxpayers’ confidential data. This public-private partnership has collaborated since 2015 to protect the tax system and taxpayers against identity theft and fraud.

These security tips will be a central topic at this summer’s National Tax Forums, which consist of three-day continuing education events.

Among the most common threats faced by tax professionals are phishing and related scams. These are designed to mislead recipients and cause them to reveal personal information, such as passwords, bank account numbers, credit card numbers, or Social Security numbers.

Tax professionals who are victims of any of these frauds or of identity theft should promptly contact their IRS Stakeholder Liaison and provide details of the situation. They can also share information with the relevant state tax agency by visiting the Federation of Tax Administrators (FTA) page dedicated to data breach notification on the site taxadmin.org. 

The Meaning

Tax professionals and taxpayers should be aware of the different terms related to the phishing:

• Phishing/smishing: Phishing emails or text messages (SMS) attempt to mislead recipients into clicking a suspicious link, providing information, or downloading a file containing malware.
• Spear phishing: It targets a specific person or company and uses a more realistic email, known as “bait.” These scams can be harder to identify; they are not sent in bulk.
• Clone phishing: It is a scam that copies a legitimate email and forwards an almost identical message, posing as the original sender. It replaces a safe link or attachment with one that contains malware or that directs the recipient to a fake site to verify accounts, enter personal information, or claim refunds.
• Whaling: Usually targets leaders or other executives who have access to large amounts of information within an organization or company. Other common targets of these attacks are payroll offices, human resources departments, and finance offices.
• New client scam: They target tax professionals through emails from senders posing as potential clients; the aim is to trick professionals into opening links or attachments that infect computer systems with the goal of stealing client information.