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How to Avoid The Latest Business Tax Scams

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Tax scams can be detrimental to small and medium-sized businesses (SMBs). Scams can harm your business finances and reputation. To help you avoid business tax scams, we compiled our top tips. Learn Scam Trends The first step to avoiding business tax scams is to learn about them, including common scams and the latest scam trends. Check out our lists of the top 10 Tax Scams SMBs Need To Watch Out For and other tax scams you should be aware of.  Visit Government Websites When looking to apply for an EIN, for example, or respond to a request from the IRS, make sure to do so through the correct government website. The IRS website is at https://www.irs.gov/. Be sure to look for the banner at the top of the page that says, “An official website for the United States government.” State government websites also end with “.gov” but local governments may not. If you receive a tax letter that lists any other URL, it is likely spam.  Verify Identity Always verify the identity of individuals or organizations requesting sensitive tax information. Ask for these details: Full name Contact information, including phone number and email address Credentials, such as a Certified Public Accountant (CPA) license or Enrolled Agent (EA) designation Official documentation, such as a letter or notice for the tax authority Also, be aware of how different entities will contact you regarding your tax information. For example, the IRS will always mail tax documents to you, and they will never call, text, email, or contact you via social media to demand payment or discuss your taxes. The only exception to this rule is if the IRS has already sent multiple letters asking you to pay your tax bill, but even those calls are rare.  If you are contacted by a third-party debt collector and you owe back taxes, you will first receive a letter in the mail from the IRS letting you know that the collection agency will contact you to collect the debt. If you have not received such a letter from the …

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10 Tax Scams SMBs Need To Watch Out For

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Scammers have become increasingly sophisticated in their tactics, making it crucial for SMBs to stay informed and vigilant. Every year, criminals and scam artists come up with new tactics to deceive unsuspecting small and medium-sized business owners and leaders. According to the IRS's annual 2023 Dirty Dozen list, tax fraud risks are not confined to tax season. This is why businesses must stay informed about evolving tax scams and understand how to minimize the possible impact on their operations. 10 Latest Tax Scams Targeting SMBs We previously wrote about 2022 tax scams targeting small and medium businesses. This article goes into 10 of the most prevalent business tax scams in 2023. Watch out for an upcoming article that shares practical tips you can follow to avoid falling victim to these schemes! 1. Business-Related W-2 Scams One of the most common tax scams targeting SMBs is the W-2 scam. Hackers use fake emails or text messages to trick payroll and human resources professionals into sharing sensitive tax information, such as employees' W-2 forms. Once cybercriminals access the W-2 forms, they file fake tax returns to claim refunds. 2. Employee Identification Number Scams Scammers target businesses applying for Employer Identification Numbers (EINs) by tricking them into signing up through fraudulent websites. EINs are required for various business accounts and tax filings. These scammers collect the taxpayer's personal information and may use it for identity theft.  3. IRS Impersonation Scams In an earlier blog post, we previously discussed phone and text tax scams from criminals impersonating the IRS, but this technique has only evolved and spread even further. These scammers often leave messages with phone numbers that are either non-functional or only work for a short period of time. They may even provide a fake IRS agent's name and badge number to appear more convincing. It is important to remember that the IRS will never initiate contact with …

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