The digital landscape is evolving, and so are the tactics of identity thieves. As we enter Day 4 of National Tax Security Awareness Week, the IRS and Security Summit partners are sounding the alarm for businesses, taxpayers, and tax professionals to update their digital defenses.
With tax-related identity theft schemes on the rise, it’s critical to stay vigilant and protect sensitive financial data.
Why Cybersecurity Matters During Tax Season
Identity theft peaks during tax season, especially when scammers exploit moments of vulnerability. From small businesses to individual taxpayers, anyone can be targeted.
Criminals often disguise themselves as trusted organizations—like the IRS or banks—through emails, texts, and even social media messages.
This year’s focus is on combating these evolving scams and ensuring that everyone updates their cybersecurity practices.
Top Digital Threats Businesses Face
Phishing Scams
Phishing remains one of the most common and dangerous threats. Fraudsters send emails or texts pretending to be from legitimate sources to trick people into revealing personal information.
Common tactics include:
- Fake refund alerts urging immediate action.
- Emails mimicking IRS communication with “urgent” document requests.
Social Media Manipulation
Scammers now leverage social media platforms to share misleading tax advice or connect directly with potential victims. They often provide false information about tax credits or refunds, leading taxpayers to share confidential details.
Steps to Protect Your Business and Personal Information
Practical Cybersecurity Measures
Implementing simple, proactive steps can significantly reduce the risk of falling victim to tax-related scams:
- Update Security Software Automatically: Ensure that antivirus programs and firewalls are current.
- Use Multi-Factor Authentication (MFA): Adding an extra layer of security to accounts makes it harder for hackers to gain access.
Secure Your Devices
Encrypting your devices and backing up critical files should be a priority. According to IRS recommendations, using strong passwords combined with MFA is one of the most effective deterrents.
The Role of the Security Summit
Established in 2015, the Security Summit is a collaborative effort between the IRS, state tax agencies, and the national tax community. Its mission is to prevent tax-related identity theft and educate the public on the importance of cybersecurity.
Since its inception, this partnership has prevented billions of dollars from falling into the hands of criminals.
Their ongoing efforts have been instrumental in reducing identity theft cases, especially during the heightened risk period of the holiday shopping season and tax filing deadlines.
IRS Recommendations for Businesses
Manage Your EIN Information
Businesses must keep their Employer Identification Number (EIN) details up-to-date. Failing to do so can lead to unauthorized filings or identity theft.
Actions include:
- Reporting address changes within 60 days using IRS Form 8822-B.
- Regularly reviewing EIN usage to detect any irregularities.
Steps to Take After a Breach
If a business suspects it has been a victim of identity theft, the IRS offers several resources:
- Business Identity Theft Affidavit (Form 14039-B): Report suspected theft promptly.
- Identity Theft Central: A hub for businesses and taxpayers to access detailed guidance on handling data breaches.
Stay Vigilant, Stay Protected
National Tax Security Awareness Week serves as a timely reminder to prioritize cybersecurity. Whether you’re a business owner, tax professional, or individual taxpayer, protecting your financial data is essential.
By implementing recommended security measures, staying informed about the latest scams, and regularly updating your digital defenses, you can minimize the risk of identity theft and safeguard your future.
For more information, visit The IRS Security Summit page or contact your local tax professional.
