December 19, 2021
Candace J. Dixon
The IRS and the Security Summit, which is a coalition of the IRS, the states and the nation’s tax community, recently held the 6th annual National Tax Security Awareness Week from November 29-December 3, a special week that focused attention on protecting sensitive financial information against identity thieves.
National Tax Security Awareness Week featured a series to help protect individuals, businesses and tax professionals from identity theft with a special emphasis on tax security awareness for both younger and older Americans. One of the key messages was that even if someone doesn’t file a tax return, their online interactions can lead to scammers getting their sensitive information and using it to try obtain a refund.
While the Security Summit has increased their defenses against identity theft, including with the Identity Theft Information Sharing and Analysis Center (ISAC), scammers have sought more ways to slip past defenses and obtain sensitive personal financial information. The IRS and the Security Summit continue to see constantly evolving threats and scams that might mimic the IRS or others in the tax community by using fake emails, texts and online scams with COVID-related messages, stimulus payments or tax refunds for the purpose of attempting to file tax returns and steal refunds.
“The nation’s tax community has successfully joined forces to protect taxpayers through the Security Summit effort, but we need help in this continuing battle,” said IRS Commissioner Chuck Rettig. “Taxpayers and tax professionals are the first line of defense against scammers looking for refunds. We are entering a sensitive holiday and tax period, and we urge people to protect their personal information – and avoid problems at tax time.”
Taxpayers and tax professionals alike face an increased risk in the coming months as identity thieves continue to use the pandemic as a way to trick people. They often use recent tragedies or charities to convince people into sharing financial data.
Here are highlights from this year’s National Tax Security Awareness Week:
Day 1 - Cyber Monday: Protect personal and financial information online
The IRS and the Security Summit reminded people to take these basic steps:
Use security software for computers and mobile phones and keep it updated.
Avoid phishing scams, especially related to tax refunds and COVID-19, Economic Impact Payments and other tax law changes.
Use strong and unique passwords for all accounts.
Use multi-factor authentication whenever possible.
Shop only secure websites with the "https" in web addresses and the padlock icon
Avoid shopping on unsecured and public Wi-Fi in places like coffee shops, malls or restaurants.
Read more in the IRS News Release: Taxpayer alert as holidays, tax season approach: Watch out for scams, protect financial information; National Tax Security Awareness Week, Day 1 highlights important tips
Day 2 - Giving Tuesday: Beware of scammers using fake charities
The IRS and the Security Summit warned people to avoid getting scammed when donating to charities with these tips:
Never let any caller pressure you into giving a donation without allowing you time to do some research.
Make sure that the charity is real by asking for its exact name, website and mailing address and confirming it later.
Be careful about how a donation is made; after researching the charity, pay by credit card or check, not by gift card or wiring money.
Read more in the IRS News Release: National Tax Security Awareness Week, Day 2: Giving Tuesday reminder that scammers can use fake charities to get sensitive information
Day 3 – Get an Identity Protection PIN
Taxpayers who can verify their identities online can opt into the IRS IP PIN program, a tool to protect them and their tax refund, in a major expansion of the program from previous years. Here’s what people need to know:
The Identity Protection PIN or IP PIN is a six-digit code known only to the individual and the IRS that provides another layer of protection for taxpayers’ Social Security numbers on tax returns.
Use the Get an Identity Protection PIN (IP PIN) tool at IRS.gov/IPPIN to immediately get an IP PIN.
Never share the IP PIN with anyone but a trusted tax provider.
Read more in the IRS News Release: National Tax Security Awareness Week, Day 3: Choosing a special Identity Protection PIN adds extra safety for taxpayers
Day 4 – Tax professionals should review their security protocols
As identity thieves continue targeting tax professionals, they should review the “Taxes-Security-Together” Checklist, including:
Deploy basic security measures.
Use multi-factor authentication to protect tax software accounts.
Create a Virtual Private Network if working remotely.
Create a written data security plan as required by federal law.
Know about phishing and phone scams, especially related to Electronic Filing Identification Numbers (EFINs), COVID-19 related tax-law changes including Economic Impact Payments.
Create data security and data theft recovery plans.
Read more in the IRS News Release: National Tax Security Awareness Week, Day 4: Security Summit warns tax pros that pandemic adds to data-theft risks; offers tips and outlines common scams
Day 4 - Use digital signatures to submit IRS forms and check account details on secure portal
The IRS began accepting digital signatures on a variety of forms this past year. They also made improvements to their online accounts platform to help both tax pros and individuals:
Tax pros may go to the new Tax Pro Account on IRS.gov to digitally initiate Power of Attorney and Tax Information Authorization requests.
Taxpayers have digital control over who can represent them or see their account information on the Online Account portal.
The IRS now accepts a wide array of digital signatures on a number of forms that cannot be electronically filed.
Read More in the IRS News Release: National Tax Security Awareness Week: Tax pros, taxpayers can use secure online account and digital signature options
Day 5 – Businesses should implement safeguards; watch out for tax-related scams
Most cyberattacks are aimed at small businesses with fewer than 100 employees. Here are some details:
Learn about best security practices for small businesses.
The IRS continues protective masking of sensitive information on business transcripts.
A Business Identity Theft Affidavit – Form 14039-B – is available for all businesses to report theft to the IRS.
Beware of various scams, especially the W-2 scam that attempts to steal employee income information.
Check out the “Business” section on IRS’s Identity Theft Central at IRS.gov/identify theft.
Read the IRS News Release: National Tax Security Awareness Week, Day 5: Security Summit partners remind businesses to tighten security; be aware of steps to help prevent, protect data loss
The IRS published their executive column “A Closer Look,” featuring James Lee, IRS Criminal Investigation Chief, and Damon Rowe, Executive Director, IRS Office of Fraud Enforcement taking a look at how the IRS investigates and helps prosecute fraud. You can also read the IRS 2021 National Tax Security Awareness Week page.