Ask The California Employment Tax And Payroll Tax Attorney – Tax Professionals – Be Aware Of Email Scams To Steal Your EFIN
By Robert S. Schriebman
2024
Introduction
In early February 2024, the IRS issued a warning to tax professionals that new scams were afoot to steal your Electronic Filing Identification Number (EFIN), IR-2024-36 (February 8, 2024).
Scammers are now posing as tax software providers and requesting EFIN documents from tax professionals under the guise of a required verification to transmit tax returns. These thieves are attempting to steal client data and tax preparers’ identities creating the potential for the filing of fraudulent tax returns and the theft of refunds. IRS Commissioner Werfel said, “With filing season underway, scammers use this time of the year to target tax professionals as well as taxpayers in hopes of stealing information that can be used to try filing fraudulent tax returns.”
Tax professionals have already reported to the IRS dozens of scams targeting them. These scams include a US-based area code for faxing EFIN documents and provides instructions on obtaining EFIN documents from the IRS e-Services site if unavailable. According to the IR, scam variations being seen used different fax numbers for software vendors. Other warning signs of a scam include inconsistencies in the email wording and a German footer in the email.
The IR also provided a sample email scam as follows:
“Dear [receipient_email_address],
Help us protect you
Because many Electronic Filing Identification Numbers (EFINs) are stolen each year and used to file fraudulent tax returns, the IRS has asked software vendors, such as Software A, to verify who the EFIN owner is by getting a copy of the IRS issued EFIN document(s). Our records show that we do not have a document for one or more of the EFINs that you transmit with.
What this means for you: Until your EFIN is verified, you will be unable to transmit returns. Please provide a copy of your EFIN Account Summary from IRS e-Services, with a status of “Completed”, to Software B for verification. To send us your EFIN: Fax to Software B at 631-995-5984.”
There are further instructions and checklists in the provided example in the IR.
Tips to Avoid and How to Report Scams
Tax professionals are prime targets for these scams that seek to gain access to sensitive client information. These scams are evolving and increasing in volume. If you are on the receiving end of these types of email scams, you should notify the Treasury Inspector General for Tax Administration (TIGTA) to report the IRS impersonation scam 1-800-366-4484. You should also save the email(s) and send them as an attachment to [email protected].
Conclusion
I recommend that you visit the IRS website and fully review IR-2024-36. There are special webinars that you can attend that will give you more information.
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Robert Schriebman has a successful practice in the Rolling Hills Estates area of Los Angeles County serving clients throughout California and the United States. He has successfully dedicated more than 50 years to helping individual taxpayers, business owners, CPAs, Enrolled Agents, and tax attorneys navigate the complicated tax systems of the federal and state governments. Mr. Schriebman is in private practice. He is not affiliated in any way with the EDD and he is not employed by the EDD or any other agency of the State of California.
Robert Schriebman has written the only 2 books ever published dealing with how California Employment Development Department (EDD) operates. See “California Tax Collection Practice and Procedures” and “California Taxation Practice and Procedure,” both published by Commerce Clearing House.
Robert Schriebman has written over 20 books including the major manual used nationally by practitioners and the IRS, “IRS Tax Collection Procedures – A Manual for Practitioners” published by Commerce Clearing House.
Robert Schriebman has written over 20 books including the major manual used nationally by practitioners and the IRS, “IRS Tax Collection Procedures – A Manual for Practitioners” published by Commerce Clearing House in addition to the only 2 books ever published dealing with how California Employment Development Department (EDD) operates. See “California Tax Collection Practice and Procedures” and “California Taxation Practice and Procedure,” both published by Commerce Clearing House.
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