Tax Time Fraud: Protecting Small and Medium Businesses from Scammers”.

Small and medium business owners need to be wary of tax scams, warns Attorney General Dana Nessel. 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, it is important for business owners to be vigilant and understand the common tactics used by fraudsters during tax season.

One common scam that businesses may encounter 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 scam involves fake application websites for Employer Identification Numbers (EINs). It is advised to only trust websites ending in “.gov” to avoid falling victim to these scams. Additionally, businesses may receive calls from individuals falsely claiming to be from the IRS and demanding immediate tax payments. However, it is important to note that the IRS will not ask for immediate payment over the phone, text, or email.

To prevent falling victim to these scams, small and medium business owners should train their employees on how to recognize them and report any suspicious activity. If a business believes they have been targeted in a tax scam, they should file reports with the IRS and FTC and 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.

Attorney General Dana Nessel and the state of Michigan are committed to helping businesses defend against fraudulent attempts during tax season. By staying informed about common tactics used by scammers and taking necessary precautions, small and medium business owners can safeguard themselves from falling victim to these schemes