Attorney General Dana Nessel has issued a warning to small and medium business owners about the threat of falling victim to tax scams. The state has noticed that scammers often target entrepreneurs by making threats of legal action, making false promises of tax refunds, and sending phony tax bills.
To protect themselves from these scams, Nessel advises business owners to be vigilant and understand the common tactics used by scammers during tax season. One such tactic is W-2 scams, where fraudulent emails and texts are sent to payroll or human resources professionals in an attempt to obtain tax information. Another tactic involves fake application websites for Employer Identification Numbers (EINs). It is important to only trust websites ending in “.gov” to avoid falling victim to these scams.
Businesses may also receive calls from individuals falsely claiming to be from the IRS and demanding immediate tax payments. However, the IRS will not ask for immediate payment over the phone, text, or email. To protect their businesses, it is recommended that owners train their employees on common scam tactics and impostors to watch out for. If a business believes they have been targeted in a tax scam, they are encouraged to file reports with the IRS and FTC, and to contact the FBI if their emails have been compromised. For more information on how to protect your business from tax scams, visit the state of Michigan’s website.
In conclusion, small and medium business owners must stay informed and alert in order to prevent falling victim to tax scams. By being aware of the common tactics used by scammers, businesses can protect themselves and their finances. Attorney General Dana Nessel and the state of Michigan are committed to helping businesses defend against fraudulent attempts during tax season.