IRS Encourages Reporting of Tax Fraud, Scams, and Suspicious Activity

Tax-related fraud and identity theft continue to pose security risks for individuals and businesses. Fraudsters may impersonate the Internal Revenue Service (IRS), send fraudulent tax notices, attempt to obtain sensitive personal information, or use stolen identities to file fraudulent tax returns. Employers and HR professionals should remain alert to suspicious activity, particularly when handling employee tax records, payroll information, and other confidential data.

To help combat these threats, the IRS encourages taxpayers, tax professionals, and the public to report suspected tax fraud, scams, identity theft, data breaches, and other tax-related wrongdoing through its online reporting resources at IRS.gov/SubmitATip.

What Types of Activity Should Be Reported?

Suspicious tax-related activity can take many forms. Examples include:

• IRS Impersonation Scams: Emails, text messages, or phone calls from individuals falsely claiming to represent the IRS and demanding payment or requesting personal information.
• Tax-Related Identity Theft: Unauthorized use of an individual’s Social Security number or other identifying information to file a fraudulent tax return or claim a refund.
• Fraudulent Payroll or Tax Requests: Suspicious requests for employee W-2 forms, payroll records, Social Security numbers, or other sensitive tax information.
• Phishing and Fake IRS Websites: Messages directing recipients to fraudulent websites designed to steal login credentials, financial information, or personal data.
• Suspected Data Breaches: Unauthorized access to or disclosure of taxpayer information that may be used for tax-related fraud.

HR and payroll departments may be particularly attractive targets because they maintain sensitive employee information that criminals can use for identity theft and fraudulent tax filings.

How to Report Suspicious Activity

The IRS provides a centralized online resource to help individuals and businesses identify the appropriate reporting process for different types of tax-related fraud.

Anyone who suspects tax fraud, identity theft, an IRS impersonation scam, or other tax-related wrongdoing can visit IRS.gov/SubmitATip for instructions on submitting a report.

The appropriate reporting method depends on the type of suspected activity. The IRS provides different reporting procedures for phishing attempts, identity theft, suspected tax violations, and other fraudulent conduct.

Individuals should avoid responding to suspicious messages, clicking unfamiliar links, or providing personal or financial information before verifying the legitimacy of a request.

What HR Departments Should Do

Employers should encourage employees to promptly report suspicious requests involving payroll, tax documents, or employee information.

If an HR or payroll employee receives an unexpected request for W-2 forms, employee Social Security numbers, or other confidential records, the request should be independently verified before any information is released. Employees should also follow their organization’s internal security incident reporting procedures.

When suspicious activity involves company systems or employee data, internal reporting is especially important. Notifying the appropriate IT or security personnel allows the organization to investigate the situation, determine whether information may have been compromised, and evaluate whether additional action is necessary.

Reporting suspected fraud to the IRS does not replace an employer’s internal incident response procedures or any applicable legal notification obligations.

Prompt Reporting Helps Prevent Further Fraud

Suspicious activity should not be ignored simply because no financial loss has occurred or because the recipient did not respond to the message. Attempted fraud can provide valuable information about emerging scams and help authorities identify patterns of criminal activity.

By remaining alert, verifying unusual requests, and promptly reporting suspected wrongdoing, employers and employees can help protect sensitive information and reduce the risk of tax-related fraud.

For more information or to report suspected tax-related fraud, visit IRS.gov/SubmitATip.