The Internal Revenue Service kicked off the 10th National Tax Security Awareness Week this December, highlighting the growing threat of tax-related identity theft and scams during the holiday season. The initiative, led by the Security Summit coalition of IRS officials, state tax administrators, and tax software companies, aims to protect taxpayers as criminals increasingly target personal financial information.
“With the holiday shopping season underway and tax season quickly approaching, we are urging taxpayers and tax professionals to take extra steps to protect their financial and tax information,” said IRS CEO Frank Bisignano. The warning comes as identity thieves ramp up sophisticated schemes to trick people into sharing sensitive data that can be used to file fraudulent tax returns and steal refunds.
Since the Security Summit’s inception, the collaborative effort has protected millions of taxpayers and prevented billions of dollars from being wrongly paid to fraudsters. However, as internal defenses have strengthened, criminals have shifted tactics to directly target taxpayers, businesses, and tax professionals to steal authentic-looking information.
The timing of this awareness campaign is particularly crucial as both holiday shopping and tax preparation season create prime opportunities for scammers. Business owners and high-income professionals face heightened risks due to the complexity of their financial situations and the valuable data they handle.
Rising Threats Across Multiple Channels
Identity thieves are increasingly using social media platforms to spread misleading tax advice and connect with potential victims. These schemes often involve influencers convincing taxpayers to provide false information on tax forms or suggesting the IRS is hiding secret tax credits from them.
Phishing emails and smishing text messages remain common tactics, with criminals impersonating the IRS and other legitimate organizations. These communications typically request personal information or direct recipients to send money, often exploiting recent tragedies or masquerading as charitable groups.
Seniors face particular vulnerability, as scammers target individuals over 65 or nearing retirement for personal and financial information. When criminals trick seniors into making early withdrawals from retirement accounts, it can trigger unexpected tax consequences and penalties beyond the immediate financial loss.
Enhanced Protection Measures for Tax Professionals
The IRS has reinforced legal obligations for tax professionals to maintain Written Information Security Plans and implement multi-factor authentication for systems handling client data. These requirements reflect the reality that tax professionals have become prime targets due to the sensitive financial information they access.
To combat these evolving threats, many Security Summit partners have formed the Coalition Against Scam and Scheme Threats. This new group will be particularly active during the upcoming tax season, coordinating efforts to identify and counter fraudulent schemes across the tax ecosystem.
The Identity Theft Information Sharing and Analysis Center, developed by the IRS and Security Summit partners, serves as a key tool for identifying emerging scams and coordinating defensive measures across the tax system.
Identity Protection PIN as Key Defense
One of the most effective tools against tax-related identity theft is the Identity Protection PIN, a six-digit number that prevents others from filing tax returns using someone’s Social Security number or Individual Taxpayer Identification Number. The IRS encourages all taxpayers, including those living abroad, to proactively obtain an IP PIN rather than waiting until after becoming a victim.
The agency emphasizes that legitimate IRS communications never initiate contact through email, text messages, or phone calls demanding immediate action or payment. Taxpayers should verify any suspicious communications by contacting the IRS directly through official channels.
As tax season approaches, business owners and high earners should review their security practices and consider additional protective measures. The IRS provides resources through Security Summit partners and maintains updated guidance on preventing tax information theft through official channels.
Source: IRS and Security Summit partners announce 10th Annual National Tax Security Awareness Week | IRS.gov