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Nessel reminds business owners to watch out for tax scams

Small business
Posted at 3:43 PM, Apr 15, 2024
and last updated 2024-04-15 17:09:46-04

LANSING, Mich. — Attorney General Dana Nessel is reminding small and medium business owners to watch out for tax scams.

The state says bad actors often target entrepreneurs by threatening legal action, issuing false promises to deliver tax refunds and sending fake tax bills.

“Criminals who perpetrate tax scams against small and midsized businesses are not only defrauding hardworking entrepreneurs but also undermining the integrity of our tax system for financial gain,” says Nessel. “My department is committed to protecting all Michigan residents from bad actors. I encourage small business owners to remain vigilant against these fraudulent attempts by understanding the common scams that target their organizations during tax season.”

Nessel says scams may arise in the form of:

  • W-2 scams sent to payroll or human resources professionals via fraudulent emails and texts. These scams try to get ahold of businesses’ tax information by requesting the immediate delivery of W-2 forms.
  • Fake application websites for Employer Identification Numbers (EINs). Don’t trust websites ending with anything other than “.gov.”
  • Callers falsely claiming to work for the IRS, telling businesses they owe taxes and must send payment immediately. Nessel says the IRS will not ask for immediate payment over phone, text or email.

Businesses are encouraged to train employees on common scam tactics and impostors to watch out for.

Those who believe their businesses were targeted in a tax scam are asked to file reports with the IRS and FTC. Contact the FBI to report compromised emails.

Visit the state of Michigan’s website for more information.

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