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IRS Identifies Tax Fraud Red Flags To Help Your Tax Professional Defend Against Data Theft

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The Internal Revenue Service, state tax agencies and the tax industry are working together as the Security Summit to urge tax professionals to learn the signs of data theft in order to quickly protect their clients. Tax professionals must contact the IRS immediately if an identity theft issue is suspected, while also contacting insurance or cybersecurity experts to assist them with determining the cause and extent of the loss.

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The IRS said to look for these red flags:

Tax professionals should also watch out if their clients report receiving the following:

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If a tax pro is the victim of data theft, then it should be immediately reported to the local IRS Stakeholder Liaison and emailed to the Federation of Tax Administrators at StateAlert@taxadmin.org. Tax pros should be proactive with clients who could have been impacted, the IRS said, suggesting appropriate actions such as obtaining an IP PIN or completing a Form 14039, Identity Theft Affidavit, if applicable.

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