As tax season approaches, small and medium business owners should be aware of the growing number of scams designed to defraud hardworking entrepreneurs. Attorney General Dana Nessel is urging caution, emphasizing that these scams often involve threats of legal action, false promises of tax refunds, and fake tax bills.
Nessel’s warning comes as businesses across the state fall victim to a range of scams, including W-2 scams that use fraudulent emails and texts to obtain sensitive information. Fake EIN applications are also a common tactic used by scammers, with callers posing as IRS representatives demanding immediate payment for alleged back taxes over phone, text or email.
To protect themselves from falling victim to these scams, businesses are encouraged to educate their employees on common tactics used by impostors and fraudsters. If a business believes they have been targeted in a tax scam, they should immediately file reports with the IRS and FTC and contact the FBI to report any compromised emails. For more information on how to protect your business from tax scams, visit the state of Michigan’s website.
