The Internal Revenue Service on Friday warned tax preparers of a new scam in which cyberthieves hijack a preparer’s computer system, file client tax returns, and redirect refunds to thieves’ accounts.
The IRS advisory, which was distributed to the media and tax-industry participants, said the agency is aware of a handful of cases to date. The scheme, which comes ahead of the April 18 tax filing deadline in most areas, is the latest development in cybercriminals’ ongoing efforts to steal tax refunds using the information of legitimate taxpayers.
The scam has also surfaced with state tax returns, said Verenda Smith, a spokeswoman for the Federation of Tax Administrators, an industry group of state revenue officials. On Tuesday, the Indiana Department of Revenue warned the state’s CPA Society to take precautions against it.
“We are seeing this in a lot states. It’s not concentrated in any one geographic area or type of firm,” said Andy Bucholz, an executive with LexisNexis Special Services, which helps 16 states fight tax cyberfraud. For the full article click here
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