Fraud Referral a Priority for IRS Small Business Unit’s New Head

For answers to your questions regarding small business tax returns, please call Kevin M. Sayed, J.D., LL.M., at 252-321-2020. The following materials were originally published by Bloomberg BNA.

September 12, 2019 3:43 PM

Referring more cases for criminal investigation will be a top priority for the IRS’s Small Business/Self-Employed division, the unit’s new leader said.

Strengthening the relationship between SB/SE and the IRS’s Criminal Investigation division “is an important component as to why I’m in this position,” Eric Hylton, the new commissioner of SB/SE, said Sept. 12 on a call with reporters. He worked at CI for 26 years before taking his new position Sept. 1.

  •  Hylton’s appointment aligns with IRS Commissioner Charles Rettig’s previously stated goal of increasing the number of cases that the agency’s civil divisions refer to CI. The referrals now are only 7% of CI’s total caseload, both Rettig and Hylton have said.
  •  “Fraud referrals should represent a much higher percentage of CI’s inventory,” Hylton said on the call. “This definitely will be an area of emphasis.”
  •  SB/SE also will aim to increase outreach to external agencies like the Justice Department, and will ramp up enforcement and make better use of data analytics, he said.
  •  Hylton was joined on the call by Darren Guillot, new deputy commissioner for collection and operations support at SB/SE, and De Lon Harris, the new deputy commissioner for examination. They also began their new roles Sept. 1.

To contact the reporter on this story: Allyson Versprille in Washington at aversprille@bloombergtax.com

To contact the editors responsible for this story: Patrick Ambrosio at pambrosio@bloombergtax.com; Kathy Larsen at klarsen@bloombergtax.com

 

 

 

It’s important for tax pros to know the signs they are a cyberthief’s victim

If you are a taxpayer or tax preparer experiencing these issues, please call Kevin M. Sayed, J.D., LL.M., at 252-321-2020. The following materials were originally published by the IRS.

Tax professionals should learn the tell-tale signs that their office may have experienced a data theft. Such thefts could have resulted in fraudulent tax returns filed in their clients’ names.

Here is a list of warning signs that a tax professional or their office may have experienced a data theft:

  • Their clients’ e-filed returns are rejected by the IRS or state tax agencies. This happens because someone else already filed a tax return with their client’s Social Security number.
  • Clients who haven’t filed tax returns begin to receive taxpayer authentication letters from the IRS. The IRS sends letters such as the 5071C, 4883C and 5747C to confirm a taxpayer’s identity for a submitted tax return.
  • Clients who haven’t filed tax returns receive refunds.
  • Clients receive tax transcripts that they didn’t request.
  • Clients who created an IRS Online Services account receive an IRS notice that their account was accessed.
  • Clients who have an account get an IRS emails saying their account is disabled.
  • Clients unexpectedly receive an IRS notice that an IRS online account was created in their names.
  • The number of returns filed with the tax professional’s Electronic Filing Identification Number is higher than the number of clients they have.
  • Tax professionals or clients responding to emails that the firm did not send.
  • Network computers running slower than normal.
  • Computer cursors moving or changing numbers when the user is not even touching the keyboard.
  • Network computers locking out employees.

More information:

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