IRS Launches Initiative to Combat Growing Number of Tax Scams

The Internal Revenue Service (IRS) announced a new coalition with members of the tax industry on Friday seeking to counter the growth of scams threatening tax systems and taxpayers.
The new “Coalition Against Scam and Scheme Threats” (CASST) initiative was convened at the request of IRS Commissioner Danny Werfel.
The 2024 number was more than 20 percent higher than the confirmed identity theft cases during the 2023 season.
The CASST task force will “better protect taxpayers from falling prey to unscrupulous actors by leveraging multilateral relationships across the tax ecosystem to minimize the filing of fraudulent tax returns,” the IRS stated.
In addition to the IRS, other members of the joint effort include the Federation of Tax Administrators which represents state tax agencies, national tax professional organizations, and leading tech firms operating in the tax industry.
Groups like the American Coalition for Taxpayer Rights and the National Association of Computerized Tax Processors have announced their support for the program. In total, the joint effort has the backing of more than 60 different groups from the private sector.
The joint effort aims to put in new protections by the 2025 filing season to prevent taxpayers from being scammed. The group will work to make structural changes to improve the ability to spot and stop the scams.
“We see repeated instances of scammers using major disasters as a way to prey on well-meaning taxpayers. In these tragic situations, many people want to help, but con artists too frequently come in posing as charitable groups to take advantage of the situation, stealing money and personal information,” said Werfel.
“People should remember it’s important to never feel pressured to give donations immediately. They should do some research and only donate to clearly established charities that help victims.”
Many taxpayers are applying for the program after being pushed into it by scamsters who charged excessive fees for their services, the IRS stated.
IRS warned people not to click any unsolicited communication claiming to be from the agency as it could load malware onto their computers and steal information.
“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,” the agency said.