{"id":66736,"date":"2025-02-03T22:18:49","date_gmt":"2025-02-03T22:18:49","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/investing\/ira-social-security-income-tax-and-all-things-financial-12\/"},"modified":"2025-02-03T22:18:49","modified_gmt":"2025-02-03T22:18:49","slug":"ira-social-security-income-tax-and-all-things-financial-12","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=66736","title":{"rendered":"IRA, Social Security, income tax, and all things financial"},"content":{"rendered":"


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In a recent news release (IR-2024-306), the IRS warns about scams you need to be aware of, really heinous contacts where the scammers pretend to be the\u00a0 IRS. But here\u2019s one key takeaway: the IRS doesn\u2019t use email (or text messages) as the regular communication to deliver notices of deficiency, requests for additional information, and the like. The IRS is big about the paper notice \u2013 you\u2019ll recognize it immediately, with the official IRS seal and all.<\/p>\n

The information that the IRS presents is good to know, you should be familiar with what they have to say.<\/p>\n

Here is the text of the news release:<\/p>\n

WASHINGTON \u2013 Because identity thieves target the financial data of businesses and the self-employed using new schemes, the Internal Revenue Service and the Security Summit<\/span><\/a>\u00a0partners today urged companies and individual taxpayers to review and update their security measures and practices to\u00a0guard against the latest scams<\/span><\/a>.<\/p>\n

Fraudsters often try tricking businesses and others into sharing personal information \u2014 such as names, passwords and account numbers \u2014 through emails, texts and direct messages made to look like they come from a legitimate source, like the IRS, a bank or a trusted tax professional.<\/p>\n

In some recent schemes, social media is used to dole out misleading tax advice about refunds and eligibility for tax credits like the Fuel Tax Credit or the Paid Sick and Family Leave Credit. In other instances, social media has been used to connect taxpayers with scammers to try to get them to falsify forms. In others, scammers impersonate charity organizations, then use spoofed websites and phone numbers, as well as fake email messages, to draw in the unsuspecting.<\/p>\n

\u201cWith the IRS and the Security Summit partners working together to increase our defenses against fraud, it means identity thieves increasingly look to steal valuable information from businesses large or small, individual taxpayers as well as tax professionals,\u201d said IRS Commissioner Danny Werfel. \u201cWith these scammers constantly evolving their tactics, everyone needs to remain vigilant throughout the year. We urge businesses and taxpayers to review and update security measures regularly, keep abreast of the latest scams, and think before sharing any sensitive data \u2014 even with a seemingly trusted person or entity.\u201d<\/p>\n

Security Summit partners urge extreme caution about such solicitations and the accompanying links, attachments and contact information they contain. Never click, call or reply without first independently verifying the source.<\/p>\n

Officials highlighted the threat to businesses and others on the fourth day of\u00a0National Tax Security Awareness Week 2024<\/span><\/a> (this was in December, 2024). The annual event, now in its ninth year, was created by the Security Summit, a public-private partnership formed in 2015 between the IRS, state tax agencies and the national tax community. The partners work together to combat tax-related identity theft and raise awareness among taxpayers and tax professionals about safeguarding themselves and their customers from security threats.<\/p>\n

Identity thieves often ramp up their efforts during the holiday shopping season, which is already in full swing, and as tax time approaches. They\u2019ve increasingly focused on businesses and individual taxpayers in the hopes of circumventing the strengthened defenses the IRS and its Security Summit partners have put in place in recent years.<\/p>\n

Since its inception, the work of the Security Summit partners has helped protect millions of taxpayers against identity theft and prevented billions of dollars from being wrongly paid out to fraudsters.<\/p>\n

\u201cAt the Federal Trade Commission, protecting small businesses and their owners is always a top priority,\u201d said Samuel Levine, Director of the FTC\u2019s Bureau of Consumer Protection. \u201cDuring National Tax Security Awareness Week, the FTC commends IRS efforts to educate businesses on how to enhance their cybersecurity while recognizing and avoiding common scams \u2013 and, of course, reporting them to\u00a0ReportFraud.ftc.gov<\/span><\/a>.\u201d<\/p>\n

Taxpayers, businesses can protect themselves with extra security<\/h2>\n

With identity thieves looking for better sources of data to try filing false tax returns, business and taxpayer security is even more important. The Summit partners encourage taxpayers, businesses and tax professionals to remember to take some simple \u2013 but frequently overlooked \u2013 steps to protect their important financial and tax information. These include:<\/p>\n

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  1. Set security software to update automatically.<\/li>\n
  2. Back up important files.<\/li>\n
  3. Require strong passwords and pair them with multi-factor authentication.<\/li>\n
  4. Encrypt all devices.<\/li>\n<\/ol>\n

    More information and additional recommendations can be found at the\u00a0Federal Trade Commission\u2019s Cybersecurity for Small Business<\/span><\/a>\u00a0page. Businesses and consumers are also encouraged to report IRS-related scams to\u00a0phishing@irs.gov<\/a>.<\/p>\n

    Businesses are also encouraged to keep their Employee Identification Number (EIN) information current and to report changes of address or reporting party promptly and within the required 60 days using\u00a0IRS Form 8822-B, Change of Address or Responsible Party \u2013 Business<\/span><\/a>.<\/p>\n

    What to do after a possible identity theft<\/h2>\n

    If the theft occurred because of a scam targeting Form W-2 information, there are special reporting procedures, which can be found in the business section at\u00a0Identity Theft Central<\/span><\/a>.<\/p>\n

    Businesses can also use the\u00a0Business Identity Theft Affidavit (Form 14039-B)<\/span><\/a>\u00a0to proactively report potential identity theft to the IRS if they:<\/p>\n

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    1. Receive a rejection notice for an electronically filed return because another return is already on file for the same period.<\/li>\n
    2. Get a notice about a tax return they didn\u2019t file.<\/li>\n
    3. Are notified about forms W-2 they didn\u2019t file.<\/li>\n
    4. Notice a balance due when one isn\u2019t owed.<\/li>\n<\/ol>\n

      If businesses are the victim of a data breach with no tax related impact, they should visit Identity Theft Central\u2019s business section for details on reporting the theft.<\/p>\n

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