Was “Coalition Against Scam and Scheme Threats” the best they could come up with for an official group against tax scams? America’s smartest tax-minded brains dug as deep as they could and that’s what they landed on? Well anyway, the CASST is here and as its name implies, it’s a group effort representing the Internal Revenue Service, state tax agencies, and all sorts of entities across the tax industry that’s meant to “combat the growth of scams and schemes threatening taxpayers and tax systems.” You’ll note they aren’t just talking about Indian dudes impersonating IRS agents scaring your grandma into buying Google Play cards, they’re talking about aggressive tax credit promoters who have nothing to do since the ERC moratorium, too.
Said the IRS in a press release:
The new combined effort follows a variety of increased scams and schemes that intensified during the past filing season that aimed to exploit vulnerable taxpayers while enriching fraudsters and promoters.
Convened at the request of IRS Commissioner Danny Werfel, the coalition of federal and state tax agencies along with software and financial companies as well as key national tax professional associations agreed to a three-pronged approach. They will work to expand outreach and education about emerging scams, develop new approaches to identify potentially fraudulent returns at the point of filing and create infrastructure improvements to protect taxpayers as well as federal, state and industry tax systems.
Some familiar names have joined the effort, namely the National Association of Computerized Tax Processors, National Association of Tax Professionals, National Association of Enrolled Agents, and the National Society of Accountants. The AICPA is on board too. As are the McTax companies: Intuit, H&R Block, Jackson Hewitt, and Liberty Tax.
The IRS said there has been increased activity involving a variety of scams and schemes harming taxpayers, including the Fuel Tax Credit, household employment taxes and the Sick and Family Leave Credit.
The IRS has seen hundreds of thousands of dubious claims come in where it appears taxpayers are claiming credits for which they are not eligible, leading to refunds being delayed and the need for taxpayers to show they have legitimate documentation to support these claims.
Numerous other scams and schemes continue to be seen circulating on social media and are highlighted through efforts including the annual IRS Dirty Dozen list and alerts from the Security Summit partners. The new approach will increase collaborative efforts to raise awareness and education about schemes, not just during tax season but throughout the year.
Yes, folks, they’ve created a coalition to battle TikTok tax advice. Finally. “Social media is an easy way for scammers and others to try encouraging people to pursue some really bad ideas, and that includes ways to magically increase your tax refund,” said IRS Commissioner Danny Werfel back in April. “There are many ways to get good tax information, including @irsnews on social media and from trusted tax professionals. But people should be careful with who they’re following on social media for tax advice. Unlike hacks to fix a leaky kitchen sink or creative makeup tips, people shouldn’t rely on made-up ways on social media to patch up their tax return and boost their refund.”
Mmm, we might need a Coalition Against TikTok Makeup Hacks too.
Statements of support from leading members of the nation’s tax community for Coalition Against Scam and Scheme Threats task force [IRS]
