Cyber Scammers Do It For You to File Your IRS Taxes Before You

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CyberWisdom Safe Harbor Commentary on IRS Taxes:

A must-read story from krebsonsecurity.com notes that today, one day after January 29, officially the first day of the 2018 reporting season, is also known as the day cyber tax scammers began to demand a false tax rebate on behalf of the victims of identity theft which is stealing your tax returns. Want to minimize the chance of this year’s tax fraud? Give the tax before the bad guys!
Hundreds of thousands (or even millions of U.S. dollars) of U.S. citizens suffer tax rebates every year. Victims usually know about crimes only after they are denied because the liar assaulted them. Even those who do not need to submit a return can be victims of refund fraud, as do those who do not actually have a refund from the IRS.
According to the IRS, consumers’ complaints about tax fraud have been steadily declining for years, as the IRS and the states have enacted stricter measures to screen potential fraud applications.
If you submit taxes electronically and the returns are denied, and if you are a victim of identity theft (for example, if your social security number and other information occurred during the Equifax spill last year), you should file an identity theft Affidavit form 14039). The IRS recommends that if you suspect that you are the victim of identity theft, even if you have to continue paying the tax paper and submitting the tax return.
If the IRS considers you may be the victim of tax fraud for the preceding tax year, they may send you a special application password, which you will need to enter with this year’s tax return before you can electronically obtain IRS accept. This year is the third of the last five I received from the IRS for one of the PINs.
Of course, submitting taxes early to beat fraudsters requires one person to have all the tax forms. As a wholly-owned company, this is a big challenge as many companies have spent their sweet time sending 1099 forms etc. (even if they were asked to do so on January 31).
Many companies are now turning to online services to provide tax forms to contractors, employees, and others. For example, I received several emailed notifications about the online availability of Form 1099; most said they were using snail mail to send the form, but if I just created an account or entered some personal information on a third-party site, Well if I need them earlier, I can get them online.
Having seen so many websites deal with personal information, I am not very interested in more volunteers. According to Bankrate, even if the taxpayers do not yet have the full 1099, they can still submit returns – as long as you have the right information and how much you have.
Bankrate explains: “Unlike the W-2, you typically do not need to append 1099s to your tax returns.” They’re just shipping, so you know how many reports and copies you have to the IRS, so the return processor can double-check your entry. As long as you have the correct information, you can put it on your tax form without the need for a hand statement. ”

IRS Taxes W2
The IRS started to remind its employers in January that they wanted to limit the proliferation of fraud during the tax season, so the IRS simplified the process by which employers reported such scams and took extra steps to protect their employees.
The statement said: “The IRS can take steps to protect employees, provided that employers immediately notify employers of theft.
This is how the W-2 scam works
Unlike most scams targeting as many potential victims as possible, the W-2 form is much more narrow-minded. Once a goal is identified – whether small or large – the fraudster looks at the company and finds the name of the payroll manager or employee responsible for the file. As one of the organization’s top executives, these crooks request payroll staff members a copy of the W-2 form for all employees.
Once the information is sent from the company, the thief has everything needed to file a false tax return, including the employee’s name, address, social security number, income and withholding information. Once you submit your return, the refund will be credited directly to your account. These fake returns may give rise to refunds, or the information can be posted for sale on dark sites.
Employers need to exercise caution when handling employee records
Employers need to be more cautious about employee records and thoroughly check all requests for information before posting to protect their personal information.
Taxpayers’ identity theft is not limited to the unsuspecting salary staff who post employee information to crooks because identity thieves use data illegally obtained from various third-party and government sites to file false tax rebates.
Surge in Email, Phishing and Malware Schemes on IRS Taxes
Phishing is a hoax by which scammers lure unsuspecting victims by sending e-mail to reveal personal and financial information that can be used to steal the identity of the victim.
The IRS has issued a number of warnings about fraudulent use of the IRS name or logo by fraudsters seeking to obtain consumer financial information in order to steal their identity and assets.
Fraudulent emails are designed to trick taxpayers into thinking that these are official communications from the IRS or other people in the tax industry, including tax software companies. These phishing programs may seek information related to refunds, application status, confirmation of personal information, order transcripts, and verification PIN information.
Watch out for fake emails that appear to come from tax professionals, asking for information on the IRS form. The IRS does not require life insurance and annuity updates from taxpayers or tax experts. Beware of this scam.
Changes can be seen by text message. IRS knows email phishing scams, including links to fake websites on the official IRS website. These emails contain instructions for “You want to update IRS electronic files now”. These emails are not from the IRS.
These sites may ask for information to provide false tax returns or may carry malicious software that could infect a computer and allow criminals to access your files or track your keystrokes for information.

In past tax years, identity thieves used data collected from various third-party and government websites to file false tax rebates – including from the IRS itself! One of their longstanding favorites is the Get Transcript service from IRS, which had quite relaxed certification before.
Read more…
Today, Jan. 29, is officially the first day of the 2018 tax-filing season, also known as the day that fraudsters start requesting phony tax refunds in the names of identity theft victims. Want to minimize the chances of getting hit by tax refund fraud this year? File your taxes before the bad guys can! Tax refund fraud affects hundreds of thousands, if not millions, of U.S. citizens annually. Victims usually first learn of the crime after having their returns rejected because scammers beat them to it. Even those who are not required to file a return can be victims of refund fraud, as can those who are not actually due a refund from the IRS. Engaging post, Read More…
thumbnail courtesy of krebsonsecurity.com

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