AG Nessel Reissues Business Tax Scams Alert

LANSING – This Tax Day, Michigan Attorney General Dana Nessel is urging small business owners to be vigilant against tax scams by bad actors who are actively targeting entrepreneurs. The Attorney General is reissuing her alert, Tax Scams Targeting Small and Midsized Businesses, to underscore the importance of understanding and safeguarding small businesses against financial fraud. These scams frequently use threats of legal action, fictitious tax bills, or promises of tax refunds to deceive unsuspecting business owners or their employees.

“Scammers are stepping up their efforts to target businesses through deceptive and sophisticated schemes,” said Attorney General Nessel. “This Tax Day and beyond, Michigan businesses should stay alert to common scam tactics to protect themselves from becoming victims.”

In her alert, Attorney General Nessel outlines some of the tax-related scams perpetrated against small and midsized businesses.

• Business-Related W-2 Scams – These scams happen when cybercriminals send phony emails or text messages to payroll and HR specialists, enticing them to divulge private tax information to gain access to workers' W-2 Forms. These tactics put employees and company data at risk. According to the IRS, the communications can read something like this: “I am analyzing some reports and need a copy of your W-2s for last year. Please send ASAP.” Once the cybercriminals obtain the W-2s, they file fictitious tax forms in an attempt to get refunds. Companies should review their policies for sharing employee data and consider a two-person oversight process for approving employee data distribution.
• Employer ID Number Scams – When companies apply for Employer Identification Numbers (EINs), they can be lured to fraudulent websites. EINs are free and can be obtained legitimately through IRS.gov. Any site that does not end with a .gov is not an official government website.
• IRS Imposter Scams – This is the most frequently reported scam, which involves scammers claiming to be from the IRS, who place calls or send texts to individuals telling them they or their business owes taxes that must be paid urgently to avoid additional penalties or jail. The IRS will never contact you by text, phone, or email and demand immediate payment and will never ask for payment in the form of gift cards or through money apps.

The Attorney General’s alert recommends businesses create a security protocol and train employees to recognize scams and government imposters.

If you believe your business has been the victim of an IRS scam:

• Access the IRS Impersonation Scam Reporting webpage or call 800-366-4484.
• To report phone scams to the Federal Trade Commission, visit the FTC Report Fraud site. Include “IRS Telephone Scam” in the notes.
• Report unsolicited emails claiming to be from the IRS or an IRS-related component like the Electronic Federal Tax Payment System.
• Businesses that have discovered an email compromise should also report it to the Federal Bureau of Investigation’s Internet Crime Complaint Center (IC3).

The Attorney General has also launched a Business Identity Theft initiative to help create awareness about the different forms of identity theft that target small businesses. To file a complaint with the Attorney General, or get additional information, contact:

Consumer Protection Team
P.O. Box 30213
Lansing, MI 48909
517-335-7599
Fax: 517-241-3771
Toll-free: 877-765-8388
Online complaint form

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