Top Tax Scams Every Business Owner Needs to Watch Out for in 2024

Tax season is around the corner, which means so are tax scams. Without fail, every year, individuals and business owners alike fall victim to tax scams, resulting in the loss of substantial amounts of money and sensitive personal data. According to the Better Business Bureau, taxpayers lost $5.7 billion due to tax scams and fraud in 2022 alone. In today’s article, you’ll discover the top scams you need to be on the lookout for to reduce your chances of becoming these scammers’ next victim.

The IRS has specific methods of contacting you.

One way to lessen your chances of falling for Internal Revenue Service scams is to know how the IRS will contact you. Per the IRS website, the IRS will not initiate communication with taxpayers through e-mail, text messages or social media platforms for the purpose of soliciting personal or financial information. The IRS’s main method of communication is physical mail; however, if they’re unable to reach you via mail, they may initiate a phone call. If this is the case, they will still try not to solicit any personal or financial information over the phone, and they will never threaten you or demand payment. If you’re second-guessing anything you receive, you can check out this article to help you figure out if it’s really the IRS contacting you.

Here are the top scams to keep an eye on this tax season

The Refund Scam

The Internal Revenue Service has issued a warning to taxpayers regarding a scam designed to deceive individuals into believing they are entitled to a refund. This is often the most common scam that we see happen every year.

In this scheme, recipients receive a formal notification, usually a letter, stating that they have an “unclaimed refund” available. There are variations of this, including one scam that uses a cardboard envelope from what looks to be a certified delivery service and bears the IRS logo.

Similar to many scams, the deceptive letter provides contact information and a phone number that is in no way affiliated with the IRS. What sets this scheme apart is its request for various sensitive personal details from taxpayers, including detailed images of driver’s licenses. Identity thieves seeking to get ahold of tax refunds and other confidential financial data can exploit such information. Stay vigilant and be cautious of such misleading communications. If something seems off, it probably is.

Identity Theft

If cybercriminals are able to get access to your personal information, they can file a fake tax return on your behalf and potentially collect a refund payment. The IRS recently shared that more than 1 million tax returns were flagged last year for possible identity theft.

One tool to prevent tax ID theft is to apply for an Identity Protection PIN from the IRS before you file your return. It’s also good to file early before criminals have a chance, and if you get a notice about an alleged “duplicate tax return” or a notice saying that additional taxes are owed, contact the IRS directly as soon as possible.

The ERC Scam

The Employee Retention Credit (ERC), sometimes called the Employee Retention Tax Credit, or ERTC, is a refundable tax credit against certain employment taxes. The IRS and tax professionals continue to see aggressive broadcast advertising, direct mail solicitations and online promotions involving the ERC. While the credit is real, aggressive promoters are misrepresenting and exaggerating who can qualify for the credit.

This has led the IRS to issue many warnings about ERC schemes from third-party promoters that charge large up-front fees or a fee based on the amount of the refund. These promoters may fail to inform taxpayers that they must reduce wage deductions claimed on the business’s federal income tax return by the amount of the credit.

Businesses, tax-exempt organizations and others thinking about applying for the ERC need to carefully review the official requirements for this credit before they claim it.

The “Impact Payment” Scam

As you prepare to collect the required documents for filing your 2023 return, be aware of a new online scam circulating. This scheme involves an e-mail displaying the IRS logo and addressing the “third round of economic impact payments,” deeming it an “important matter concerning your recent tax return filing.”

The e-mail asserts that certain inconsistencies or missing information have been identified and assures recipients that a refund of $976 awaits them upon submission of the required document. Notably, there’s a button labeled “complete my information,” but IRS Media Relations Specialist Robert Marvin urges you not to click it.

The “Additional Information Needed” Scam

If you receive an e-mail from the IRS requesting that you submit a tax form, proceed with caution. While there are legitimate forms that taxpayers may be required to complete (such as the W-9 for freelancers and W-4 forms for employees), these are typically directed to companies and do not go directly to the taxpayer from the IRS.

To steer clear of potential scams, it is recommended to disregard such messages and promptly report the fraud to the IRS. It’s important to note that the IRS does not initiate contact via e-mail, and any solicitation for forms through this is indicative of fraudulent activity.

Another Tax Agency Scam

Scammers may adopt the appearance of legitimate or fictitious tax agencies when making phone calls. Instances include impersonating entities like the Taxpayer Advocate Service or the nonexistent Bureau of Tax Enforcement.

While the Taxpayer Advocate Service is a legitimate entity, it does not initiate unsolicited calls to taxpayers. On the other hand, the Bureau of Tax Enforcement is not a genuine organization.

Exercise caution and skepticism toward unsolicited calls alleging to be from government agencies. Obtain a reference number, if possible, terminate the call and initiate a return call using an officially verified phone number. This practice helps protect against potential scams.

Be Smart and Protect Yourself

The tax season often sees a surge in scams, but with some vigilance identifying an IRS imposter and protecting your finances and sensitive data becomes possible.

To enhance protection and mitigate the risk of identity theft, it is recommended to file your taxes early. Early filing reduces the window for scammers to impersonate you. When hiring a tax preparer, conduct thorough vetting and be wary of those promising substantial refunds without prior access to your information. For an added layer of security and peace of mind, explore a fraud protection service.

Cybercriminals never take a break. Tax scams are only one way they’re trying to steal your information and money. It’s important to have a full cyber security system in place to make sure your organization is protected at every possible entry point. We recommend getting a FREE third-party security assessment. Our team of experts will examine your entire network for vulnerabilities and help you map out a plan to fix them. In all the years we’ve been doing this, we’ve always found something.

To schedule your no-obligation assessment for your peace of mind, click here.

Or go to: https://virtualitmanagers.com/free-network-analysis-and-security-assessment/

6 Common Technology Problems Small Business Owners Face

Technology can provide a strategic advantage for companies in every industry when properly utilized. However, one of the biggest issues small business owner’s faces is overcoming some of the common tech obstacles that hinder productivity. These issues can range from minor inconveniences to serious threats that can permanently shut down a business.

In today’s blog, we’ve outlined 6 of the most common technology problems small business owners deal with on a regular basis and how you can either avoid or resolve them.

1. Failing to Meet Industry-Specific Compliance Requirements

Many industries have specific regulatory compliance requirements that define how companies must organize and protect data. Common examples you might be familiar with include HIPAA, which regulates electronic medical data in the health care industry; FFIEC, GLB and SEC in the financial services industry; and CMMC for companies that work directly or indirectly with the Department of Defense.

For a small business owner wearing many hats, it can be difficult to keep up with the latest compliance requirements, especially if you don’t have an IT or cyber security employee on staff. Missing a requirement cannot only lead to hefty fines and legal issues but it can also incidentally leave you vulnerable to a cyber-attack.

The best thing you can do is work with a managed services provider (MSP) that has experience in compliance for your specific industry. While compliance is not the same as cyber security, the two overlap, and an experienced provider will be able to help you bridge the gap, so you’re protected and meeting any mandatory requirements.

Click here to get a FREE Network Assessment so you’ll know if you’re currently missing any mandatory compliance requirements for your organization.

2. Lack of Strategic IT Planning

One of the biggest issues we see is a disjointed relationship between the business leaders in the organization and the IT team. In this digital age, technology is an integral part of how a business operates. When business leaders, who tend to see the larger picture, loop in IT professionals, they can make informed decisions about what technology to deploy to make long-term growth and scalability easier and more efficient.

Several areas in which your IT team should act as a strategic advisor are:

• Optimizing business operations to streamline processes and improve productivity.
• Selecting the best line of business software
• Upgrading old or outdated hardware and software
• Implementing cyber security best practices
• Deploying cost-effective and scalable cloud solutions
• Creating a predictable IT budget that doesn’t rely on break-fix solutions.

3. Inadequate Cyber Security Protection

Cyber security risks become more advanced every year. Decisions about cyber security should not be solely left to the IT department. These are business decisions that need to be made with the buy-in of the leadership team because failing to have a robust cyber security system and becoming the victim of a cyber-attack can be detrimental to a business. There are trade secrets, confidential communications, customer data and employee records that are stored on your company’s devices that you can’t afford to have fall into the wrong hands.

Work with your IT team to deploy a three-pronged approach that includes:

Prevention Strategies: Do you have the right software and solutions in place, such as antivirus, firewalls, MFA, etc., to protect your organization from an attack? Are you regularly training employees on the latest threats and how to identify them?

Detection Mechanisms: This is a key piece that most small businesses neglect, which leaves them vulnerable. Do you have a process in place for detecting a breach, or would it go unnoticed until it’s a bigger problem? You should be conducting regular scans and monitoring, as well as employing endpoint detection and response tools.

Response And Recovery Action Steps: Do you have a plan in place if something goes wrong? Would your employees know what to do? You need to have an IT team supporting you that can identify and mitigate any issues quickly before the damage can’t be undone. Leaders in the organization should take this seriously.

4. Poor User Support

If your employees are struggling with their technology all day, productivity will decrease. Using slow, outdated devices and software can be frustrating for employees, leaving them feeling less motivated and hindering their output. It’s even worse when you have unreliable technical support following the “get to it when we get to it” approach.

With the right IT team, whether that’s in-house staff, outsourced support or, more commonly, a combination of both, you can trust that an experienced technician with the tools and knowledge to quickly assist employees and solve problems will always be available to help.

5. Poor User Asset Management

Managing access to various levels of data for each employee can be tedious and overwhelming in larger organizations. IT professionals can take on the role of managing and monitoring user access so that no one has access to data they don’t need, security policies are enforced, and accounts are constantly monitored for anomalies.

They can also assign new users, make changes to existing accounts, delete accounts, add remote users, set permissions on how employees can access the network and more. This is particularly important when it comes to offboarding employees. Whether the employee is leaving on good terms or not, removing data access from someone who has access to sensitive information can be risky and needs to be handled with care.

6. Lack of Training

As mentioned, making sure your employees know how to use technology efficiently is paramount to productivity, but it’s also important for security reasons. All employees should regularly go through cyber security training to ensure they understand and are following best practices.

This is typically not the role of the business leaders in the company. Most often, they need refresher courses too. When you work with a reliable IT team, they’ll be able to regularly inform team members of new threats and what to look out for, run phishing simulations to test employees on whether or not they know what to do and more. One training session is NOT enough! To build a cyber security–focused culture, you need to talk about it often.

Is it time to solve your IT problems once and for all?

We have your back. To get started, book a FREE, no-obligation Network Assessment. We’ll review your systems using our Point Optimization Checklist to let you know how and where your organization can better utilize technology to grow.

To Schedule Your FREE Assessment, Please Visit https://virtualitmanagers.com/free-network-analysis-and-security-assessment/ Or Call Our Office At 305-574-2169.

Pirates Aren’t Just Threats On The Open Seas

“Know Ye That We Have Granted and Given License to Adam Robernolt and William le Sauvage…to annoy our enemies by sea or by land, wheresoever they are able, so that they share with us the half of all their gain.”

These were the words of King Henry III of England as he issued one of the first letters of marque, effectively employing private sailors to bolster his naval power and fill the royal coffers, all under the guise of lawful privateering. This clever maneuver not only financed the kingdom’s ambitions but also paved the way for the discovery and plunder of new worlds, all at the expense of England’s adversaries.

Fast-forward several centuries, and we find the essence of privateering alive and well, albeit in a new battlefield: cyberspace. Today, businesses, particularly in the United States, find themselves at the mercy of digital privateers.

Recently, the FBI testified before Congress that the People’s Republic of China was preparing to “sow chaos” by taking down the US power grid, oil pipelines and water systems in the event of a conflict over Taiwan.

As small business owners, you are not mere spectators in this digital skirmish but frontline warriors. The misconception that cyber security is a concern reserved for larger entities couldn’t be further from the truth. In reality, the agility and often less fortified digital defenses of small businesses make you prime targets for these modern-day privateers.

The revelation of these threats isn’t meant to dishearten but to awaken a recognition of the critical need for robust cyber security measures. The landscape has shifted, and the onus is on you to protect your enterprise from digital marauders.

The good news? There’s a silver lining in the form of unprecedented opportunity for those ready to fortify their defenses.

Consider this: The investment in cyber security is not merely a safeguard but a strategic advantage. The narrative has evolved from viewing digital protection as an operational cost to recognizing it as a cornerstone of business resilience and growth. CEOs and business leaders are now acknowledging the indispensability of cyber security and integrating it into their core business strategies.

So, where do you stand in this evolving scenario?

This moment calls for reflection, for a candid assessment of your cyber security posture. Are you prepared for the digital equivalent of a storm at sea? Have you charted a course that not only navigates through these treacherous waters but also seizes the opportunities they present?

The urgency cannot be overstated. The threats are real, and the consequences of inaction grave.

We’ve made it easy for you to take the next step toward a proactive defense and invite you to join us for a complimentary 15-minute discovery call. On this call, we’ll get an idea of where your business stands to see if it makes sense to have further discussions. To do this, simply call us at 305-574-2169 or go to: [https://virtualitmanagers.com/free-network-analysis-and-security-assessment/]

The era of digital privateering is upon us, but so is the opportunity for unparalleled growth and security. Let’s embark on this journey together, safeguarding your enterprise and securing its future in the digital frontier.