IRS Issues New Scam Alerts to the Public – Important Information to Protect Yourself

The Internal Revenue Service (IRS) has recently issued three new scam alerts, one of which could potentially impact nearly every taxpayer. The first alert is about a new scam involving the purchase of clean energy tax credits. Let’s cut into these scams and know how to protect yourself.

Clean Energy Tax Credit Scam

The IRS has warned taxpayers about certain “unscrupulous” tax return preparers who are misrepresenting the rules for clean energy tax credits, part of the Inflation Reduction Act (IRA).

How IRA Works

The IRA includes transferability provisions allowing the purchase of “eligible federal income tax credits from investments in clean energy to offset a buyer’s tax liability.” This complexity in tax law has been exploited by scammers, who entice taxpayers into claiming credits they are not entitled to. IRS Commissioner Danny Werfel emphasized the importance of consulting reputable tax professionals before claiming such credits.

Stay Informed

• Verify the Source: Ensure your tax preparer is reputable and knowledgeable about current tax laws.
• Consult Professionals: When in doubt, seek advice from certified tax professionals.

By staying vigilant and informed, you can protect yourself from falling victim to these scams and ensure you are only claiming the credits you are entitled to.

Smishing Attacks

Another scam targets car dealers and sellers through phishing and smishing attacks, which have followed recent ransomware attacks on car dealerships. Cybercriminals use these methods to deceive victims into clicking suspicious links and providing personal and financial information.

The Threat

Scammers often impersonate the IRS to gain the trust of their victims. Phishing scams involve emails from fraudsters claiming to be from legitimate sources, enticing victims to provide sensitive information.

What is Smishing?

Smishing involves text messages where scammers often use threatening 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.

How to Protect Yourself

• Avoid Phishing or Smishing Messages: Never click on any URL links or open attachments.
• Report Suspicious Emails: Forward the full email headers or the email itself to phishing@irs.gov. Avoid sending screenshots or scanned images of the email.
• Delete Suspicious Emails: Remove the original email to prevent further risks.
• Seek Guidance: If you inadvertently click on a suspicious link and enter confidential information, visit the IRS’ identity protection page for guidance.

Scam Alert

The third scam alert targets tax professionals, advising them to remain vigilant against evolving schemes that could compromise sensitive client information.

Protecting Yourself

IRS Commissioner Danny Werfel noted that as defenses against identity theft have improved, thieves have targeted tax professionals to steal valuable information needed to file authentic-looking tax returns.

Common Scams

Tax professionals need to be vigilant against scams, including:

• Impersonation: Thieves may pretend to be new clients.
• Phishing Emails: Communications appearing to be from the IRS or other tax entities.
• Elaborate Schemes: Scammers may use texting and calling to execute their plans.

Staying Safe

• Verify New Clients: Ensure they are legitimate before sharing any information.
• Monitor Communications: Be cautious of emails and messages claiming to be from the IRS.
• Stay Informed: Keep up to date with the latest IRS alerts and warnings.

By staying informed and cautious, you can protect yourself and your business from these sophisticated scams. Always verify the source before sharing any personal or financial information.

Being aware of these tactics and staying vigilant can help you avoid falling victim to these schemes. Protect your personal and financial information by knowing more about the latest IRS warnings.

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