The Security Summit is a coalition of state and federal tax officials, along with private sector representatives, that works to combat cyber tax fraud, digital criminal syndicates, and organized gangs that file fraudulent tax returns in order to skim tax refunds. Organized in 2015, the coalition has six working groups that tackle different mandates such as strategic threat assessment, taxpayer awareness, and identification of tax refund fraud.
The group currently involves 42 entities with 20 industry representatives along with staff from the IRS. Over the span of the first two years of the Security Summit, the group reports a 57 percent reduction in identity theft returns and a 65 percent decline in the number of taxpayers reporting as tax return theft victims.
As we reported last summer, in 2021 the Security Summit stressed the importance of the IP PIN program. This year, the Summit produced guidance for tax professionals to help detect and avoid tax identity or tax data theft.
Red flags that could be signs of a hack or tax refund theft include:
Signals from clients that they could be experiencing tax identity theft:
Criminal tax fraud is easier to perpetrate online than it is in person. Bad actors can easily target a corporation or an individual taxpayer to obtain passwords, personal contact, and other information that allows for personal identity theft, or database access from which thousands of names and information can be harvested to create fraudulent returns.
If you believe you have suffered tax identity theft, speak with your tax professional to quickly assess the vulnerability of your tax return, refund, or financial accounts.
From offices in Chicago and Cleveland, Robert J. Fedor, Esq., LLC offers strategic legal guidance to clients throughout the U.S. and abroad on IRS audits, criminal tax investigations, payroll tax issues, and more. When you have questions about individual or business tax compliance, call us at 800-579-0997 or contact us.