Monday, April 15, 2024

IRS Warns Louisiana Tax Professionals About Email Scam Targeting New Clients

by BIZ Magazine

Tax professionals in Louisiana are being cautioned by the Internal Revenue Service (IRS) to be vigilant against a prevalent email scam known as the “new client” scam. This warning comes as cybercriminals often exploit tax professionals during the busy tax filing season.

In this scam, fraudsters pose as potential clients and reach out to tax professionals via email, seeking assistance with their taxes. The email typically contains a malicious link or attachment that the scammer claims contains their tax information. Once the tax professional clicks on the link or opens the attachment, the scammer gains access to the preparer’s email address, password, and potentially other sensitive information. In some cases, malware may also be loaded onto the tax professional’s computer, granting the scammer access to their system and their clients’ data. Furthermore, hackers may leverage the tax professional’s compromised email account to target their clients.

Tax professionals are urged to report any unsolicited email claiming to be from the IRS to [email protected]. Additionally, instances of money loss due to IRS-related scam incidents should be reported to various authorities, including the Treasury Inspector General for Tax Administration, the Federal Trade Commission, and the Internet Crime Complaint Center. Emails can also be forwarded to the internet service provider’s abuse department.

In the event of a data breach, swift action is essential. The IRS advises tax professionals to report data theft to the local IRS Stakeholder Liaison representative promptly. These liaisons notify IRS Criminal Investigation and other relevant agencies on behalf of the tax professional. Furthermore, tax professionals are encouraged to report fraud incidents to the local offices of the Federal Bureau of Investigation, Secret Service, and local police.

Tax professionals preparing state returns should also report data breaches to the relevant state authorities, such as the Federation of Tax Administrators and state attorneys general.

To effectively respond to data breaches, tax professionals are reminded of the importance of having a written security plan in place. Under Federal Trade Commission rules, tax professionals must have a Written Information Security Plan. As part of the Security Summit effort, the IRS Tax Professional team has developed a specialized document to help practitioners quickly establish such a plan.

You may also like

-
00:00
00:00
Update Required Flash plugin
-
00:00
00:00