Don't Mess With Taxes

Any small business owner, including this self-employed mechanic, could be a tax scam target. All need to stay alert this Small Business Week and beyond. (Photo by Andrea Piacquadio)

Scams are the focus of the Internal Revenue Service on this fourth day of National Small Business Week.

The topic, unfortunately, is not new, and isn’t limited to special times of the year.

Yes, the IRS has made progress in educating taxpayers about scams, as well as improving the agency’s ability to spot, stop, and in some cases helping prosecute criminal charges against the bad actors.

But con artists and scammers keep on pushing their sketchy offers.

Changing times, new scam opportunities: Part of the reason that scammers remain on IRS radar is that they adapt.

Take, for example, tariffs.

These charges already are rattling small businesses. Many rely on imported specialty parts to keep their U.S. companies running. As the costs for those materials made in foreign countries increase, America's small business owners are seeing their already slim profit margins shrink even more.

Now tariff scams are an added threat.

Tariff scams appearing: Scammers are using tariffs as part of their schemes, aimed at both businesses and individuals.

The Trump administration’s erratic imposition and then delay of tariffs is causing uncertainty around the world, and cybercriminals are exploiting the confusion.

Forbes reports an uptick in fraudulent domain registrations — 301 in the first quarter of the year — that are being used to launch a wave of scam and hate campaigns.

Lifehacker reports one tariff scam involves fake government emails, with crooks leveraging people’s unfamiliarity with tariffs by posing as official agencies seeking tariff payments directly from consumers. The online advice site also points out other tariffs schemes that send fake messages about mail and packages; fake factory shopping deals; false tariff relief payments; and investment scams, some using cryptocurrency, as a way to make money off the trade confusion.

It's even hit close to my home. Members of my local Nextdoor group have reported seeing online ads offering tariff relief. As one neighbor posted —

Tariff relief? More like tariff thief. If you spot ads on Facebook for things like a $750 “Tariff Relief Credit,” DO NOT CLICK on them (paywall link). These bogus posts trick you into filling out forms or calling a number that steals your info. Everywhere you turn, there’s another scam. Stay cyber-safe, everyone!

Of particular note was the observation that “everywhere you turn, there’s another scam.”

Common tax scams continue: The IRS agrees about the never-ending stream of schemes.

While the tax agency hasn’t yet cited any tariff-related scams, it did issue a warning this Small Business Week that even though the tax filing deadline has passed, it is important to stay vigilant against scams and fraud year-round.

The IRS each year issues its Dirty Dozen list that highlights the year’s most pervasive tax schemes, many of which impact businesses. They including new client scams, spear phishing, fake charities, bad social media advice, and false credit claims.

Anti-scam steps: The IRS notes that there are several protective measures taxpayers and businesses can take, such as watching out for fake requests for W-2s, especially with the tax filing deadline already passed.

Business owners in particular are encouraged to take proactive steps to safeguard their companies and employees by implementing robust security measures. One key step is using anti-malware/anti-virus software with automatic updates and enforcing strong passwords with multi-factor authentication.

Also ensure that you only enter personal data on secure websites, those with the https prefix, to prevent unauthorized access.

Business owners also should prioritize the protection of their Employer Identification Number (EIN). Keep it secure and up to date with accurate information. Any necessary updates to an EIN should be made promptly by using Form 8822-B.

Disaster fraud dangers: Mother Nature can present additional challenges.

Hurricane season is less than a month away, officially starting June 1. But natural disasters happen year-round.

When major storms do strike, the unfortunate results open the door for additional fraud and scams. Some scammers, for example, impersonate IRS workers, claiming they can offer “help” when filing casualty loss claims.

Disaster survivors, both individuals and businesses, can call the toll-free IRS disaster assistance line (866) 562-5227 to get answers from agency representatives about tax relief or other disaster-related tax issues.

Security education: The IRS also encourages business owners to educate employees on data security to protect both them and your business.

Available resources in this area include IRS Identity Theft Central, as well as the agency’s security awareness publications, which provide security training and awareness. IRS Publication 5961, Protect your business from tax scams, also has more information.

The IRS.gov’s scams page has more, as do the agency’s social media accounts, including @IRStaxsecurity on X for scam awareness information.

Scam reporting: The IRS also wants to hear from taxpayers about scams. There are several avenues to let tax official know about these questionable activities.

Report suspicious IRS or tax-related scams by emailing information about the scheme to [email protected].

Inform the IRS of data losses related to W-2 scams by emailing [email protected].

Notify states of any disclosures of identity information by contacting [email protected].

You also might find these items of interest:

• Tax scammers use AI to up their criminal schemes
• Don't fall victim to any of this year's Dirty Dozen tax scams
• IRS makes progress in cutting tax ID theft victims' wait times

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