Tax fraud Feed

Identity theft is bad enough, but when it's connected to your tax data, things can be particularly scary. Not only does a crook have personal information about you, but he or she can steal the tax refund you've been counting on. In some situations where your data has been hacked, you'll want to file a Form 14039, Identity Theft Affidavit, to let the inform the Internal Revenue Service that you think you may be a victim of tax-related identity theft. Now you finally can file that form online. IRS, FTC take ID theft fight further online: The IRS now will... Read more →


Rep. Lynn Jenkins (R-Kansas) and fellow Ways and Means member Rep. John Lewis (D-Georgia) have offered a bill to revamp the IRS. Remember the kinder, gentler Internal Revenue Service? That was the goal of the IRS Restructuring and Reform Act of 1998, which sought to ease up on the tax agency's aggressive collection actions back then. Now two Ways and Means Committee members are looking to remake the IRS into a modern, more efficient agency that provides taxpayers a better experience. I'm pretty sure that modernizing and refining processes for better efficiency can eventually be accomplished. As for the improved... Read more →


There are so many tax scams out there that it takes more than one post to cover them. Three posts, to be precise. This is Part 3 of the Internal Revenue Service's 2018 list of the Dirty Dozen Tax Scams. Your promised tax savings can be quickly washed away if you put your money into an abusive offshore tax shelter. This is it, a look at the final group of scams that crooks are using again this tax year to try to take our money. The final four schemes in this post, numbers 9 through 12, are like those in... Read more →


There are so many tax scams out there that it takes more than one post. Three, to be precise. This is Part 2 of the Internal Revenue Service's 2018 list of the Dirty Dozen Tax Scams. The four schemes in this post, numbers 5 through 8, are like those in the initial 2018 Dirty Dozen tax scams of 2018. They also are repeat (dis)honorees. That's because once crooks find something that works, they keep using it. And sadly, there are enough new victims out there every year to fall for it. Unless potential targets are warned. To do that and... Read more →


Those fake emails looking to steal your tax and personal data top the annual IRS scam list, but 11 other crooked tricks also made it, including fake IRS agents, sham charities and frivolous tax arguments (which are the only time anyone associates taxes with frivolity!). Highlights of each of the Dirty Dozen scams will be added as the IRS releases them, one a day over 12 business days, so keep checking back. Phishing once again makes the Internal Revenue Service's annual list of Dirty Dozen Tax Scams. When it comes to tax scams, the late and loquacious MLB Hall-of-Famer Yogi... Read more →


You open the package expecting, well you don't know what, but probably not 500 cockroaches. That, however, is what happened to a mail thief. Crooks will steal just about anything. And criminals who focus on U.S. Post Office boxes tend to increase their activity around this time every year. The reason? Tax refunds. Tax-related mail theft: Every February, people are either getting refund checks from the U.S. Treasury or they're receiving tax documents they can use to file their annual federal and state returns. Either option is a crook's dream. The checks can be cashed. The tax statements' info can... Read more →


Some folks are taking seriously the traditional tax advice to start annual tax filing tasks early. Unfortunately, those folks are crooks. The Internal Revenue Service and its Security Summit partners in state tax agencies and the tax industry have announced that they're seeing early signs that cyber criminals already are working to infiltrate the tax process. Tax practitioners are the prime targets as the 2018 filing season's opening on Jan. 29 nears. Fraudsters are sending a new round of emails in which they pose as potential clients or even the IRS to trick tax professionals into disclosing sensitive information, according... Read more →


We did it! We made it through the wild ride that was 2017. It ended in a particularly chaotic fashion, with a major tax bill that was literally written on the fly even on its last day of Congressional consideration. via Giphy.com Studios Now it's time to hunker down for what 2018 has to throw at us on the tax front. However, before we dive head-first into the new year, I'm taking one of the 365 days, just like I did at the start of 2017, to list my top 10 tax stories from the previous year. These are not... Read more →


Federal law enforcement scored a major victory this year against an India-based ring of tax crooks who pretended to be Internal Revenue Service agents in phone calls to U.S. taxpayers. The last of 24 U.S.-based member of the international tax scam pleaded guilty on Nov. 13. That brought to a successful end the multi-agency effort that helped bring down the IRS impersonation scam that since it began in 2013 has stolen $61.6 million from duped victims. But, warned the Treasury Inspector General for Tax Administration, these crooked callers are not done. "This is the largest, most comprehensive investigation that TIGTA... Read more →


Nothing says Merry Christmas like the disembodied Santa head lights (click for a closer, clearer view) that brighten our fireplace hearth each holiday season. (Please ignore my reflected selfie!) And yes, this and other Christmas decorations are already, before Thanksgiving, up at our house! Ho, Ho, Ho! I know we've yet to celebrate Thanksgiving, but I can tell that Christmas is near, too. How? Well, in addition to having already decorated our house (interior only so far for us, but ho-ho-holiday lights are already on some of our neighbors' houses) for Santa's annual arrival, I'm getting the usual year-end flood... Read more →


UPDATE, Oct. 13, 2017: Public and Congressional pressure, which included Sen. Sherrod Brown's (D-Ohio) letter to the Treasury Department urging it to review and potentially bar Equifax from consideration in any new or renewed government contracts, has paid off for opponents of the credit reporting bureau deal. The IRS announced, per an Oct. 12 report by Politico, that it has temporarily suspended the $7.25 million, no-bid contract it awarded to Equifax to verify the identities of taxpayers when they create accounts on the tax agency's website. Driver's license data was among the personal info that identity thieves obtained in the... Read more →


Former Equifax CEO Richard Smith is grilled Oct. 3 about the credit company's security breach by members of the House Energy and Commerce Committee. (Click image to watch full hearing on YouTube) Human error, specifically one human's error, is why 145 million of us are worrying about what crooks will do with the data that was stolen earlier this year in a data breach of Equifax. Richard Smith, the credit reporting bureau's former CEO, in testimony before House Energy and Commerce Committee today blamed the initial failure to patch a known security risk on a specific individual. He did not... Read more →


Identity thieves got access to personal information on 143 million Americans by hacking into credit reporting bureau Equifax's data base in late July. If you have credit, you're screwed. Thanks Equifax. Equifax is one of three major companies that tracks the credit worthiness of American consumers. The other two are Experian and TransUnion. These repositories of how we pay, or don't, our bills are where lenders, landlords and even potential employers go for information before making decisions that affect our lives. Equifax also is where criminals went for all our personal data they need to steal our financial identities and... Read more →


Every computer user is familiar with the constant updates to software. So are identity thieves. And now these crooks are targeting tax professionals in a new phishing scam designed to steal usernames and passwords. The Internal Revenue Service and its state and tax industry Security Summit partners say that this latest impersonation scheme variant is a sophisticated scam designed to get information that can be used to file false tax returns and collect fraudulent tax refunds. It's the latest in a series of scams this summer that have targeted professional tax preparers. Software upgrade hook: This is the time of... Read more →


Alfred Hitchcock nailed it in his 1955 cat burglar-turned-romance starring Grace Kelly and Gary Grant. The pair teamed up, with Grant's character using his expertise as a former jewel thief, to catch a new criminal in the wealthy playground of Monte Carlo, Monaco. (Click film screenshot to watch the movie trailer on YouTube.) The Internal Revenue Service apparently is taking a hint from a Hollywood classic. It's thinking like identity thieves to catch identity thieves. That was among the messages from IRS Commissioner John Koskinen in July 25 media teleconference. Cybercriminals are showing increasing savvy and tax expertise, particularly in... Read more →


Based on the fast and furious pace of tax scams this month, you'd think it was high tax season instead of summer. For the second time in just more than a week, the Internal Revenue Service has issued a new tax scam alert. (In case you missed it, the pervasive tax telephone scam was recently tweaked.) This latest scam warning is for tax professionals, who are receiving phishing emails purportedly from a tax software education provider. The fake communication asks for the tax preparers' help in repairing a failure in the message sender's sham database. To that fake end, the... Read more →


The Internal Revenue Service and Department of Education have a graduation gift for some students. The tax agency's income data retrieval tool that makes it easier to apply for federal financial college aid is once again operational for some applicants. This cool balloon was part of my neighbors' celebration of their son's graduation. Some Texas gusts, however, helped it take a post-graduation trip to our driveway. After snapping this photo (and Instagram video), I helped the light-headed fellow home. Since 2012, the IRS has made getting income information easier for students and their parents who are seeking financial help by... Read more →


Last week's cyberattack has affected more than 200,000 computers across 150 countries. The ransomware program known as WannaCry encrypts information on computers and demands targeted users pay $300 in order to regain access to their machines. The good news here in the U.S. is that so far, no federal systems have been affected by the global ransomware attack, according to Homeland Security Adviser Tom Bossert, who appeared at today's regular White House press briefing. The bad news is that a few companies have been hit and the government is still unaware of who was behind the attack. And as this... Read more →


It was supposed to be the annual Capitol Hill review of how the current tax filing season is going. It was supposed to be a time for the Internal Revenue Service to shine since, as the IRS commissioner said during a public speech yesterday, it's been the smoothest filing season since he took the top job in December 2013. It wasn't. During a Senate Finance hearing today, IRS Commissioner John Koskinen revealed more details of security breach connected to federal student aid applications that require inclusion of tax data. Student loan tax data security concerns: While 2017 filing season specifics... Read more →


Aquarena Springs in San Marcos, Texas, was famous in its heyday, part of which just happened to coincide with my youth, as a wonderful water park. No visit to relatives in nearby San Antonio was complete until we headed to Aquarena to ride in a glass-bottom boat, marvel at the mermaids and cheer Ralph the swimming pig as he made his famous swine dive. Click fish image for full video view of Aquarena Springs from a glass-bottom boat. The park is gone, replaced by a water research program under the auspices of Texas State University, or Southwest Texas State as... Read more →