New IRS Coalition to Combat Tax Scams
In response to the troubling rise in tax-related scams, the Internal Revenue Service (IRS) has initiated a robust new effort, forming the "Coalition Against Scam and Scheme Threats" (CASST) designed to protect both our tax systems and the taxpayers. The CASST coalition brings together an expansive network of stakeholders, including state tax agencies, national tax professional organisations, and key players in the tech industry. The coalition's primary focus will be to enhance outreach and educate the public about the dangers of emerging scams, improve methods for identifying potentially fraudulent tax returns at the point of filing, and fortify our infrastructure against these threats.
Specifically, the IRS plans to implement several strategic actions:
Enhanced Validation Processes: Improving PTIN (Preparer Tax Identification Number) and EFIN (Electronic Filing Identification Number) validations to ensure that only authorised individuals are preparing and filing returns.
Combatting 'Ghost Preparers': These are unauthorised tax preparers who often encourage fraudulent claims for credits and deductions, charging significant fees, and disappearing once the return is filed. The coalition aims to identify and mitigate these fraudulent activities through increased scrutiny and penalties.
Educational Outreach: A significant component involves expanding educational efforts to keep taxpayers and professionals informed about new and evolving scams, ensuring they are well-equipped to recognise and avoid them.
Read more about this initiative here: IRS Launches Initiative To Combat Growing Number Of Tax Scams
