IRS forms coalition to combat growing scams

The Internal Revenue Service announced it has formed a coalition with state tax agencies and the tax industry to combat the growth of scams and schemes threatening taxpayers and tax systems.

Background: The effort follows various scams and schemes that intensified during the past filing season and aimed to exploit vulnerable taxpayers while enriching fraudsters and promoters. The new The Coalition Against Scam and Scheme Threats is an outgrowth of the Security Summit effort, which was launched in 2015 to stem the growth in tax-related identity theft.

Details: Comprising federal and state tax agencies, software and financial companies, and key national tax professional associations, the new coalition will:

• Work to expand outreach and education about emerging scams.

• Develop new approaches to identify potentially fraudulent returns at the point of filing.

• Create infrastructure improvements to protect taxpayers as well as federal, state and industry tax systems.

More: Consumer Financial Protection Bureau Director Rohit Chopra recently noted that scams such as "pig-butchering” lead to billions of dollars in losses. ICBA blog posts spotlight the growth of the scam, in which fraudsters use cryptocurrencies to defraud victims, and the need for a policy response.