FTC Stops Student Loan Debt Relief Scheme, Charges Operators with Misleading Consumers Operators allegedly bilked consumers out of more than $23 million

July 11, 2019

TAGS:

 

• deceptive/misleading conduct
 
• Bureau of Consumer Protection
 
• Consumer Protection
• Advertising and Marketing
 
• Credit and Finance
 
• Credit and Loans
 
• Debt
 
• Debt Relief
 
• Education

The Federal Trade Commission has stopped a student loan debt relief scheme, alleging it bilked more than $23 million from thousands of consumers with false claims that it would service and pay down their student loans. After the FTC filed a complaint seeking to end the deceptive practices, a federal court temporarily halted the scheme and froze its assets.

According to the FTC’s complaint, since at least 2014, the operators of Mission Hills Federal and Federal Direct Group have lured consumers into paying hundreds to thousands of dollars in illegal upfront fees with false promises to lower consumers’ monthly student loan payments. The defendants also allegedly tricked consumers into submitting their monthly student loan payments directly to the defendants by falsely claiming to take over servicing the consumers’ loans. In reality, the defendants either only applied minimal payments on consumers’ loans or, in many instances, applied none of the payments to the loans, diverting consumers’ payments to themselves.

“Debt relief companies can’t collect advance fees or masquerade as federal student loan servicers,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection. “Anyone asking for upfront fees to help with student loan debt is likely a scammer, and consumers should hang up and alert the FTC.”

The Commission also alleged that the defendants obtained consumers’ student loan credentials, such as their FSA ID—a username and password used to log in to U.S. Department of Education websites—to log in and change consumers’ contact information, effectively hindering or entirely preventing consumers’ loan servicers from communicating with consumers. Many consumers went months or years before discovering that their student loans were not being repaid, according to the complaint.

The FTC has charged the following defendants with violating Section 5 of the FTC Act and the Telemarketing Sales Rule: Elegant Solutions, Inc. (also doing business as Federal Direct Group); Trend Capital Ltd. (also doing business as Mission Hills Federal); Dark Island Industries, Inc. (also doing business as Federal Direct Group and formerly known as Cosmopolitan Funding, Inc.); Heritage Asset Management, Inc. (also doing business as National Secure Processing); Tribune Management, Inc. (also doing business as The Student Loan Group); and three individual defendants, Mazen Radwan, Rima Radwan, and Dean Robbins.

How to Avoid Student Loan Debt Relief Scams

To help consumers avoid falling victim to such fraud, the FTC has consumer education related to student loan debt relief scams at ftc.gov/StudentLoans.

Only scammers promise fast loan forgiveness, and they often pretend to be affiliated with the government. Consumers should never pay an upfront fee for help, and should not share their FSA ID with anyone.

Consumers can apply for loan deferments, forbearance, repayment, and forgiveness or discharge programs directly through the U.S. Department of Education or their loan servicer at no cost; these programs do not require the assistance of a third-party company or payment of application fees. For federal student loan repayment options, visit StudentAid.gov/repay. For private student loans, contact the loan servicer directly.

The Commission vote authorizing the staff to file the complaint was 5-0. The U.S. District Court for the Central District of California entered a temporary restraining order in the case on July 10, 2019.

NOTE: The Commission files a complaint when it has “reason to believe” that the named defendants are violating or are about to violate the law and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs, and subscribe to press releases for the latest FTC news and resources.

CONTACT INFORMATION

CONTACT FOR CONSUMERS:
Consumer Response Center
877-382-4357

MEDIA CONTACT:
Nicole Drayton
Office of Public Affairs
202-326-2565

STAFF CONTACT:
Michelle Grajales
Bureau of Consumer Protection
202-326-3172

Estimated Number of People on Earth? 7.58 Billion

America Counts: Stories Behind the Numbers Estimated # of People on Earth? 7.58 Billion World population is estimated to reach 7.58 billion this month as World Population Day is celebrated on July 11 but the U.S. Census Bureau is projecting another milestone: Annual population growth will slip under 1.0% in 2020-2021 for the first time since 1950. Read More The United Nations declared July 11 as World Population Day in 1989, two years after world population crossed the 5 billion mark.  World Population 10,000 BC - 2050 AD: From 10,000 BC through the early 1800s, the world population stayed below 1 billion globally. By the 20th Century, population totals soared, more than doubling between 1920 and 1980 from fewer than 2 billion people to almost 4.5 billion in 60 years.  World Population 1988 - 2050 AD: The U.S. Census Bureau’s International Data Base shows that world population increased by more than 50% in the 32 years since the Day of Five Billion in 1987. Help us spread the word about America Counts. Share this story on social media or forward it to a friend. Share This About America Counts America Counts tells the stories behind the numbers in a new inviting way. It features stories on various topics such as families, housing, employment, business, education, the economy, emergency preparedness, and population. Contact our Public Information Office for media inquiries or interviews.

Have a sunnier tax season with these summertime IRS tax tips

WASHINGTON — Buying a home? Working a summer job? Volunteering? Activities that are common in the summer often qualify for tax credits or deductions. And, while summertime and part-time workers may not earn enough to owe federal income tax, they should remember to file a return to get a refund for taxes withheld early next year.

Here are some summertime tax tips from the IRS that can help taxpayers during tax season next year:

• Marital tax bliss. Newlyweds should report any name change to the Social Security Administration before filing next year’s tax return. Then, report any address change to the United States Postal Service, employers and the IRS to ensure receipt of tax-related items.
• Cash back for summer day camp. Unlike overnight camps, the cost of summer day camp may count as an expense towards the Child and Dependent Care Credit. See IRS Publication 503, Child and Dependent Care Expenses, for more information.
• Part-time and summer work. Employers usually must withhold Social Security and Medicare taxes from pay for part-time and season workers even if the employees don’t earn enough to meet the federal income tax filing threshold. Self-employed workers or independent contractors need to pay their own Social Security and Medicare taxes, even if they have no income tax liability. Normally, employees receive a Form W-2, Wage and Tax Statement, from their employer — even if they don’t work there anymore — to account for the summer’s work by January 31 of the following year. The Form W-2 shows the amount of earnings, withholdings for state and federal taxes, Social Security, Medicare wages and tips. Employees use the information on this form when they file their annual tax returns.
• Worker classification matters.  Business owners must correctly determine whether summer workers are employees or independent contractors. Independent contractors are not subject to withholding, making them responsible for paying their own income taxes plus Social Security and Medicare taxes. Workers can avoid higher tax bills and lost benefits if they know their proper status.

Though the higher standard deduction means fewer taxpayers are itemizing their deductions, those that still plan to itemize next year should keep these tips in mind:

• Deducting state and local income, sales and property taxes. The total deduction that taxpayers can deduct for state and local income, sales and property taxes is limited to a combined, total deduction of $10,000 or $5,000 if married filing separately. Any state and local taxes paid above this amount cannot be deducted.
• Refinancing a home. The deduction for mortgage interest is limited to interest paid on a loan secured by the taxpayer’s main home or second home that they used to buy, build, or substantially improve their main home or second home.
• Buying a home. New homeowners buying after Dec. 15, 2017, can only deduct mortgage interest they pay on a total of $750,000, or $375,000 if married filing separately, in qualifying debt for a first and second home. For existing mortgages if the loan originated on or before Dec. 15, 2017, taxpayers continue to deduct interest on a total of $1 million in qualifying debt secured by first and second homes.
• Donate items. Deduct money. Those long-unused items in good condition found during a summer cleaning and donated to a qualified charity may qualify for a tax deduction. Taxpayers must itemize deductions to deduct charitable contributions and have proof of all donations. Use the Interactive Tax Assistant to help determine whether you can deduct your charitable contributions.
• Donate time. Deduct mileage. Driving a personal vehicle while donating services on a trip sponsored by a qualified charity could qualify for a tax break. Itemizers can deduct 14 cents per mile for charitable mileage driven in 2019.
• Reporting gambling winnings and claiming gambling losses.Taxpayers who itemize can deduct gambling losses up to the amount of gambling winnings. Use the Interactive Tax Assistant to find out more about reporting gambling winnings and  losses next year.

The last two tips are for taxpayers who have not yet filed but may be due a refund and those who may need to adjust their withholding.

• Refunds require a tax return. Although workers may not have earned enough money from a summer job to require filing a tax return, they may still want to file when tax time comes around. It is essential to file a return to get a refund of any income tax withheld. There is no penalty for filing a late return for those receiving refunds, however, by law, a return must be filed within three years to get the refund. See the Interactive Tax Assistant, Do I need to file a tax return?
• Check withholding. Newlyweds, summertime workers, homeowners and every taxpayer in between should take some time this summer to check their tax withholding to make sure they are paying the right amount of tax as they earn it throughout the year. The Withholding Calculator on IRS.gov helps employees estimate their income tax, credits, adjustments and deductions and determine whether they need to adjust their withholding by submitting a new Form W-4, Employee's Withholding Allowance Certificate. Taxpayers should remember that, if needed, they should submit their new W-4 to their employer, not the IRS.

Outlet shopping: The deal is in the details

July 10, 2019

by 

Colleen Tressler

Consumer Education Specialist, FTC

For many of us, it just wouldn’t be a summer beach vacation without shopping at the local outlet mall. Over the years, we’ve picked up a few tips for outlet shopping.

Make a list of the stores you want to visit. Next, check out the retail prices of items you want to buy. Don’t have time? There are apps that can compare prices for you, or you can visit the regular retail stores websites. If you’re only saving a few dollars at the outlets, you may want to buy at the regular stores, especially if quality matters.

Take a good look at what you’re buying. Many stores sell products at their outlets made exclusively for those outlets. These items may be of lower quality than what’s sold in the regular stores. For example, a jacket might not be fully lined, the stripes on a shirt may not match up at the seams, a t-shirt may be made of a lighter-weight fabric, and shoes might be made with synthetic materials rather than real leather. If top quality is important, you may want to shop elsewhere. But if it’s the brand, style, or look that’s key, you may be in the right place.

Pile on the savings. Look for special sales offers on outlet center websites. Student, teacher, senior and military discounts also might be available. Coupons can add to your savings. Some outlet centers also offer shopper club memberships. If you join, you’ll get information about sales, events, exclusive offers from merchants, and other perks. With some clubs, you can earn gift cards and other rewards at various “spend levels.” Just be sure to read the fine print before you get to the checkout.

Ask about return policies. Some outlet stores let you return unused merchandise any time as long as the price tag hasn’t been removed and you have the receipt. Other stores have 30- to 90-day return policies, and some don’t allow any returns. And many regular retail stores won’t take returns from their outlet stores, so ask the sales staff.

For more money-saving ideas, check out Shopping Tips.

National Taxpayer Advocate Nina Olson releases comprehensive report intended to improve EITC administration; publishes ‘subway map’ of taxpayer’s journey through the tax system

WASHINGTON — National Taxpayer Advocate Nina E. Olson today released a special report on the Earned Income Tax Credit (EITC), which makes recommendations designed to increase the participation rate of eligible taxpayers and reduce overclaims by ineligible taxpayers. Also today, the Taxpayer Advocate Service (TAS) publisheda subway map that depicts a taxpayer’s “journey” through the tax system to help taxpayers and policymakers better understand the tax administration process.

Special Report on Earned Income Tax Credit

The EITC report, Earned Income Tax Credit: Making the EITC Work for Taxpayers and the Government, presents a detailed examination of the strengths and weaknesses of the EITC as currently structured and administered, and makes legislative and administrative recommendations to improve it. The report runs more than 100 pages – roughly half text and half appendices consisting of EITC data tables(page 49) and a comprehensive literature review (page 82).

“But this report is not just a research document,” Olson wrote in her preface. “It is a call to action. As we show throughout this report, the way the EITC is structured and the way the IRS is administering it often harms the very taxpayers it is intended to serve. We have made specific, common sense recommendations to mitigate that harm and reform the administration of the EITC. All our recommendations are actionable and supported by data and research.”

The report makes both general, conceptual recommendations and specific recommendations. Among the general recommendations:

• The IRS, which views itself primarily as a tax collection agency, should more explicitly acknowledge that it has a second mission – that of administering benefits programs like the EITC. Benefits administration requires a different approach from tax collection, including hiring employees with different skill sets and creating a separate set of practices and processes to carry out this second mission. While preventing improper payments is an important part of its job, the IRS should also strive to ensure that low income working taxpayers receive the benefits for which they are eligible and are treated with respect and fairness. The report points out that eligible taxpayers often lose out on benefits to which they are entitled either because they don’t claim them or because they aren’t able to navigate the IRS’s audit process.
• Congress should consider the administrability of tax provisions, especially family and child-related provisions whose eligibility criteria may be difficult if not impossible for the IRS to verify. When a tax provision is difficult for the IRS to administer, the provision is more susceptible to improper payments and may cause some taxpayers to be subjected to additional scrutiny. This additional scrutiny can be particularly burdensome for low income taxpayers, causing some to give up because they don’t have the knowledge or ability to substantiate their claims.
• Congress should conduct regular oversight hearings of the IRS on a permanent basis. These hearings would provide an opportunity for the IRS to identify successes and challenges with the laws it administers. In the case of low income tax benefits, these hearings would also provide a forum for Congress to hear directly from outside experts, including Low Income Taxpayer Clinics, return preparers, and others with insights into the challenges facing low income taxpayers and their families.

Among the report’s specific recommendations:

• Congress should consider redesigning the EITC to reduce fraud by separating the worker component from the family-size component of the credit and by revising the definition of a “qualifying child” to better reflect existing family relationships.
• Congress should authorize the IRS to establish minimum standards for tax return preparers and software providers to protect taxpayers and improve the accuracy of EITC claims.
• Congress and the IRS should take steps to ensure EITC compliance procedures are consistent with due process norms and fundamental taxpayer rights. These steps should include limiting the use of summary assessment authority (also known as “math error” authority) to appropriate cases based on clear criteria, updating and modernizing the summary assessment process, developing a structure for ban determinations that protects taxpayer rights, and clarifying and improving the procedures authorizing Tax Court review of ban determinations.

The report was written by a team of EITC experts with “real world” experience representing taxpayers.  The project was led by Professor Leslie Book of the Villanova University School of Law, who served as a “professor in residence” with TAS, and Margot Crandall-Hollick, an EITC expert with the Congressional Research Service who was detailed to TAS for a three-month period. They collaborated with a team of TAS attorney-advisors, research and technical analysts, and a Local Taxpayer Advocate. Several team members had worked at Low Income Taxpayer Clinics, where they represented taxpayers in EITC audits and Tax Court cases. The team conducted extensive interviews with internal and external stakeholders, and it compiled and reviewed reams of documents, studies, and data about the EITC as well as other benefit programs and tax credits in other countries.

On a personal note, Olson pointed out that the EITC was enacted in 1975 – the same year she began her career as a tax return preparer and that she has extensive experience with the program. “[A]s a young, newly divorced mother struggling to pay bills, I myself received the EITC,” she wrote. Professionally, Olson represented EITC claimants through a Low Income Taxpayer Clinic she founded and has worked extensively on EITC issues as the National Taxpayer Advocate.

“The EITC and I have been sisters-in-arms throughout my entire career in tax,” she wrote. “It is fitting, then, in my last Report to Congress before I retire as National Taxpayer Advocate on July 31, 2019, that we should publish this extraordinary document.”

TAS Releases Detailed ‘Subway Map’ Illustrating A Taxpayer’s Journey Through the Tax System

TAS is releasing a “subway map” that illustrates, at a very high level, the stages of a taxpayer’s journey through the tax system – from getting answers to tax law questions through audits, appeals, collection and litigation. The map makes clear the complexity of tax administration, with its many connections, overlaps, and repetitions between stages. Notably, it shows why the road to tax compliance isn’t always easy to navigate.

The National Taxpayer Advocate’s 2018 Annual Report to Congress included a series of “roadmaps” depicting a taxpayer’s “journey” through the tax system. The roadmaps were divided into seven stages: (i) tax return preparation; (ii) tax return processing; (iii) notices; (iv) examinations; (v) appeals; (vi) collection; and (vii) litigation. The purpose of the roadmaps was to help taxpayers and policymakers gain a better understanding of the tax administration process.

The subway map expands on the earlier roadmaps by providing a visually clear depiction of the taxpayer’s journey. The subway map is now available to view online and will be available in hard copy as a print map next month. To place an order call 800-829-3676 beginning July 12 and request Publication 5341.

“Anyone looking at this map will understand that we have an incredibly complex tax system that is almost impossible for the average taxpayer to navigate,” Olson said. “I personally have spent dozens of hours designing and preparing this map, as have many members of my staff.” 

View a video introduction to the subway map.

Because of the complexity and number of steps at each stage, the original roadmaps simplified certain processes by omitting multiple sub-steps and detours that in some situations can be significant. To provide a more complete picture, TAS will be working to develop a fully interactive version of the subway map in the coming year. When the interactive map is completed, a taxpayer or representative will be able to enter into it at any step and learn more about that step and the surrounding steps. TAS envisions that a taxpayer or representative will be able to input the number of an IRS letter or notice and generate a pop-up window that provides key relevant information, including where in the process the taxpayer is and what the next steps will be.

“This digital roadmap will be the culmination of many years of work and research by TAS into human cognition and learning, notice clarity, and taxpayer empowerment,” Olson said. “It is my firm belief that taxpayers must have knowledge about their rights within a bureaucracy as complex as the IRS. If only taxpayers who are represented by tax professionals have access to that knowledge, then we do not have a fair and just tax system. Thus, the digital roadmap will be a powerful tool to improve access to justice.”

About the Taxpayer Advocate Service

The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. Your local advocate’s number is in your local directory and athttps://taxpayeradvocate.irs.gov/contact-us. You can also call TAS toll-free at 877-777-4778. TAS can help if you need assistance in resolving an IRS problem, if your problem is causing financial difficulty, or if you believe an IRS system or procedure isn’t working as it should. Our service is free. For more information about TAS and your rights under the Taxpayer Bill of Rights, go to https://taxpayeradvocate.irs.gov. You can get updates on tax topics at facebook.com/YourVoiceAtIRS, Twitter.com/YourVoiceatIRS, and YouTube.com/TASNTA.

Who’s in the mix at Nixing the Fix?

By: Lesley Fair | Jul 9, 2019 2:11PM

SHARE THIS PAGE

 

• Facebook
 
• Twitter
 
• Linked-In

TAGS:

 

• Appliances
 
• Automobiles
 
• Technology
 
• Hardware
 
• Mobile
 
• Bureau of Consumer Protection
• Consumer Protection
 
• Advertising and Marketing
 
• Advertising and Marketing Basics
 
• Tech

Coldplay sang “Fix You,” but if the group had been referring to their tech devices, cars, or other products in need of repair, their efforts could have consumer protection ramifications. A July 16, 2019, FTC event, Nixing the Fix: A Workshop on Repair Restrictions, will focus on the state of the repair marketplace. Are manufacturers making it difficult (or even impossible) for consumers or independent shops to make product repairs? Are certain repair restrictions needed to ensure the security of consumer devices or to reduce the risk of injury? Do those practices affect consumers’ rights under the Magnuson-Moss Warranty Act? If this is an issue of interest to your company or your clients, check out the just-announced agenda for the half-day workshop.

Who will be speaking at Nixing the Fix? Small business owners, industry representatives, consumer advocates, regulators, legislators, and academics will share their perspectives on the consumer protection implications when widgets go wonky and people ask “Where to repair?”

FTC Commissioner Wilson will convene Nixing the Fix at 12:30 ET. Session #1 will address the question How do repair restrictions affect consumers and small businesses? The panel will explore the technological and financial impact, as well as potential safety considerations. Session #2 asks What are the arguments pro/anti repair restrictions? Advocates across the right to repair spectrum will present their pro, con, and something-in-between positions. So What’s the fix? Session #3 will explore proposed state legislation and industry initiatives. Attendees will hear from elected officials, trade associations, and right to repair advocates, and will learn about recent self-regulatory efforts. Lois Greisman, Director of the FTC’s Division of Marketing Practices, will present closing remarks.

Nixing the Fix is scheduled for Tuesday, July 16th, at the FTC’s Constitution Center, 400 7th Street, S.W., in Washington, DC. The event is free and open to the public. Minutes before the 12:30 ET start time, the webcast will go live. In addition, FTC staff will tweet throughout the workshop.
 

Tax Security 2.0 – A ‘Taxes-Security-Together’ Checklist

IRS, Security Summit partners urge tax professionals to review their practices, enhance safeguards to protect taxpayer data

IRS YouTube Videos:

• Tax Security 2.0: Taxes-Security-Together Checklist: English

WASHINGTON — Leaders from the IRS, state tax agencies and the tax industry today called on tax professionals nationwide to take time this summer to review their current security practices, enhance safeguards where necessary and take steps to protect their businesses from global cybercriminal syndicates prowling the Internet.

Despite major progress by the IRS and the Security Summit partners against identity theft, evolving tactics continue to threaten the tax community and the sensitive data of taxpayers. 

 

To help combat this, the Security Summit partners created a new “Taxes-Security-Together” Checklist to serve as a starting point for tax professionals. Beginning next week, the IRS and Summit partners will issue a series of five Tax Security 2.0 news releases highlighting “Taxes-Security-Together” Checklist action items.   

 

“The IRS, the states and the private sector tax industry have taken major steps to protect taxpayers and their data,” said IRS Commissioner Chuck Rettig. “But a major risk remains, regardless of whether you are the sole tax practitioner in your office or part of a multi-partner accounting firm. To help with this, we assembled a security checklist to assist the tax community. We hope tax professionals will use our checklist as a starting point to do everything necessary to protect their client’s data.”

 

The Security Summit — a partnership between the IRS, states and the private-sector tax community — started in 2015 to combat identity theft and protect taxpayers. Key IRS data show the Summit continues making major progress against tax-related identity theft. Between 2015 and 2018, key indicators showed:

• The number of taxpayers who reported to the IRS that they were victims of identity theft fell 71 percent. In 2018, the IRS received 199,000 identity theft affidavits from taxpayers compared to 677,000 in 2015. This was the third consecutive year this number declined.
• The number of confirmed identity theft returns stopped by the IRS declined by 54 percent, falling from 1.4 million in 2015 to 649,000 in 2018.

As the Summit has increased the tax community’s defenses against identity theft and refund fraud, cybercriminals continue to evolve. Increasingly, they look to data thefts at tax professionals’ offices to obtain large amounts of sensitive taxpayer data. Thieves then use stolen data from tax professionals to create fraudulent returns that are harder to detect.

 

The ‘Taxes-Security-Together’ Checklist

 

The Summit partners urge the tax community to review these basic security steps this summer. Some tax pros may routinely overlook these checklist items and others need to regularly revisit them. The steps are not only important for tax practitioners, but for taxpayers as well. Everyone has a responsibility to protect sensitive data.

 

The Taxes-Security-Together checklist highlights key security features 

 

√ Deploy the “Security Six” measures:

• Activate anti-virus software.
• Use a firewall.
• Opt for two-factor authentication when it’s offered.
• Use backup software/services.
• Use Drive encryption.
• Create and secure Virtual Private Networks.

√ Create a data security plan:

• Federal law requires all “professional tax preparers” to create and maintain an information security plan for client data.
• The security plan requirement is flexible enough to fit any size of tax preparation firm, from small to large.
• Tax professionals are asked to focus on key risk areas such as employee management and training; information systems; and detecting and managing system failures.

√ Educate yourself and be alert to key email scams, a frequent risk area involving:

• Learn about spear phishing emails.
• Beware ransomware.

√ Recognize the signs of client data theft:

• Clients receive IRS letters about suspicious tax returns in their name.
• More tax returns filed with a practitioner’s Electronic Filing Identification Number than submitted.
• Clients receive tax transcripts they did not request.

√ Create a data theft recovery plan including:

• Contact the local IRS Stakeholder Liaison immediately.
• Assist the IRS in protecting clients’ accounts.
• Contract with a cybersecurity expert to help prevent and stop thefts.

Security Summit partners/tax professionals urge review

 

“The states and our partners have made progress in the fight against tax-related identity theft, but criminals continue to evolve. We cannot let our guard down in this fight because our common enemy is well-funded, technologically skilled and savvy about state and federal tax processes,” said Sharonne Bonardi, president of the Board of Trustees of the Federation of Tax Administrators and Deputy Comptroller in Maryland. “To make this work, we need help from individual tax professionals across the nation.”

Checklist marks third year of Summit campaigns aimed at tax professional community

This year’s Tax Security 2.0 effort involving the Security Checklist is the third summer campaign in a row involving the Summit partners. The effort follows feedback and recommendations from the Electronic Tax Administration Advisory Committee (ETAAC) that encouraged the Summit partners to expand and intensify outreach efforts to the tax professional community on identity theft and security issues.

This year’s campaign also coincides with this summer’s IRS Nationwide Tax Forums, which will again feature a major focus on security protection for tax professionals. The sessions will provide continuing education credits for sessions led by experts from inside and outside the IRS. The American Coalition for Taxpayer Rights also will again sponsor special sessions with experts from the Pell Center for International Relations and Public Policy at Salve Regina University in Rhode Island.

Last year, Summit education effort focused on Protect Your Clients, Protect Yourself: Tax Security 101. In 2017, the campaign highlighted email schemes in Don’t Take the Bait.

Separate Summit initiatives focus on identity theft awareness for individual taxpayers and consumer alerts for developing tax scams and schemes.

Resources available for tax professionals

 

Tax professionals also can get help with security recommendations by reviewing IRS Publication 4557, Safeguarding Taxpayer Data, and Small Business Information Security: the Fundamentals by the National Institute of Standards and Technology.

Publication 5293, Data Security Resource Guide for Tax Professionals, provides a compilation of data theft information available on IRS.gov. Also, tax professionals should stay connected to the IRS through subscriptions to e-News for Tax Professionals and Social Media.