IRS Starts Program to Fight Tax Scams

In response to a significant increase in identity theft cases during the 2024 filing season, the Internal Revenue Service (IRS) has announced a new coalition with members of the tax industry. The initiative aims to address the growing threat of scams targeting both tax systems and taxpayers. According to an August 16 press release, the coalition will focus on expanding outreach and education regarding emerging scams, developing new methods to identify fraudulent returns at the point of filing, and enhancing infrastructure to protect taxpayers and tax systems at all levels. The IRS reported 15,242 confirmed instances of fraudulent returns in the 2024 filing season, marking a more than 20 percent increase from the previous year. This alarming trend has prompted the IRS to collaborate with over 60 groups, including the Federation of Tax Administrators, national tax professional organizations, and leading technology firms in the tax sector. The coalition aims to create a united front against the rising tide of scams that threaten the integrity of the tax system. In recent months, the IRS has issued multiple alerts regarding various scams, including fake charities soliciting donations and misleading offers related to the IRS’s offer in compromise (OIC) program. Taxpayers have reported being misled into applying for the OIC program by scammers charging excessive fees. Additionally, phishing scams have emerged, targeting individuals to steal personal information, while some taxpayers have been found claiming ineligible refunds, leading to delays and the need for legitimate documentation. The IRS emphasizes the importance of vigilance among taxpayers and the need for collaborative efforts to combat these fraudulent activities effectively.