The Internal Revenue Service warned Tuesday of a surge in a new type of scam in which criminals use email to masquerade as the real-life clients of genuine accountants and tax preparers.
The nation’s tax collector said that its investigations with state tax authorities and tax professionals had already uncovered an uptick in the schemes, just as the 2023 filing season is set to open on Jan. 29.
When a fraudster sends emails to an accountant in which they pretend to be an actual client, they’re hoping to trick that professional into revealing sensitive personal information about the client. The goal of the scammer is to use the data to prepare and file an authentic-looking tax return so that they can illegally collect a refund.
“These intricate email scams pose a real risk to tax professionals and the taxpayers they represent,” IRS Commissioner Danny Werfel said in a statement. “Cybercriminals try to capitalize on tax season by masquerading as real taxpayers looking for help.”
Cybercriminals targeting pros is a new twist on the scams that usually plague the taxpayers themselves. In those scams, fraudsters are still trying to file a bogus return and pocket any refund, but they do it with direct phone calls, mailing and emails to the taxpayer.
The surge in the more sophisticated scam comes while the IRS is coping with other types of potential fraud, too. Not only are officials battling billions of dollars in fraudulent claims for a pandemic-era tax credit for small businesses, but they’re ramping up scrutiny of hedge funds, law firms, real estate companies and high-income tax cheats that may be dodging the law.
“Given the mass production of these messages by cybercriminals, the number of actual ‘spearphishing’ emails sent to tax professionals associated with these campaigns likely runs into the thousands, with the goal to reach tens of thousands of preparers operating across the country,” the IRS said in the statement.
Even scarier, the usual red flags seen when taxpayers are targeted directly — things like poor spelling, bad grammar, or awkward phrasings — are often absent when the scammer approaches an accountant after gaining access to a victim’s email account, perhaps on the dark web. The electronic messages accountants are receiving “might have no grammatical or spelling mistakes or reference what appear to be legitimate tax issues,” the IRS said.
The agency called the fraudsters “highly sophisticated, well-funded and technologically adept cybercriminals” from around the world. Scammers are stealing accountants’ electronic filing identification numbers, which are used to electronically file a return directly to the IRS.
Not all fraudsters are posing as actual clients either. One common scam email the IRS said it’s seeing begins with “Hello, My name is (name can vary), I am searching for another CPA to help handle my taxes. Is it safe to say that you are accepting new clients for the 2024 tax season? Do you additionally assist with IRS representation? I figured I may have an issue with last year’s return. (Click) HERE TO VIEW MY CREDENTIAL [Link to a phishing web address].”
Karen Bair, an enrolled agent in Churchville, N.Y., said she had professional colleagues who had been scammed. “There’s at least a weekly email I get from the IRS or other professional organizations reminding us to be extra diligent now that tax season is at our doorstep,” she said. An enrolled agent is a federally licensed tax practitioner who is authorized to represent taxpayers who are appearing before the IRS regarding collections, audits and appeals.
The IRS urges taxpayers and professionals to report suspected fraud to phishing@irs.gov. The agency never initiates contact with taxpayers by email, text messages or social media channels to request personal or financial information.
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