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Friday June 5, 2026

Washington News

Washington Hotline

Identity Theft Red Flags

In a special series, the Internal Revenue Service (IRS) and its Security Partners have published several articles to assist tax preparers in helping their clients avoid identity theft.

IRS Commissioner Danny Werfel stated, "We continue to see instances where tax professionals have had their systems compromised, and they did not realize it for weeks or months. Identity thieves are creative, and they can find ways of quietly penetrating systems. There are important warning signs tax pros should watch out for that can help alert them more quickly to a security issue and speed is critical to protect clients and their businesses from a security incident."

These tax security tips are explained at Nationwide Tax Forums held in Orlando, Baltimore, Dallas and San Diego. These forums are rapidly filling up and the IRS expects to have a sold-out attendance at each one.

There are several warning signs that individuals and tax preparers should watch for to protect themselves from identity thieves.

  1. Unexpected IRS Online Account - If you received notice that a taxpayer has created an IRS Online Account without his or her consent or that the IRS has disabled an existing taxpayer online account, there is a problem.
  2. Surprise Tax Transcript - It is possible to request a tax transcript through your IRS account. However, a fraudster may have initiated that request for a tax transcript.
  3. Incorrect IRS Balance Due - If the IRS sends a notice that states an incorrect balance due for a taxpayer, there is probably an incorrect return filed by a fraudster.
  4. Unexpected Client Calls - The tax preparer may receive client calls that claim to respond to a request. However, the initial request to the client may have come from a fraudster and not the tax preparer.
  5. Unexpected Refund - A taxpayer may receive a refund without filing a tax return.
  6. Slow Computer Response - The fraudster may have uploaded malware that reduces the responsiveness of your computer. Because information is being sent by the computer to identity thieves, the computer network may slow down. In addition, a computer cursor may move on its own or data may be changed without actions by the tax preparer. Finally, the tax professional could be locked out of his or her computer network.
  7. Duplicate Social Security Number - If the fraudster files a return using the taxpayer's Social Security Number, a later return filed by the tax preparer may be rejected.
  8. Extra IRS Filing Receipts - A tax preparer may receive more acknowledgments from the IRS than returns filed.

Tax preparers should immediately notify the IRS Stakeholder Liaison if there is an attack. There also is a Federation of Tax Administrators with appropriate contacts for state tax agencies. It is important to be proactive to reduce any potential losses for clients.


Published July 26, 2024
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