Michigan Attorney General Dana Nessel urged small business owners on Apr. 15 to be cautious of tax scams targeting entrepreneurs during Tax Day. Nessel reissued her alert, “Tax Scams Targeting Small and Midsized Businesses,” emphasizing the need for vigilance against financial fraud schemes aimed at businesses.
The warning is significant as scammers continue to use deceptive tactics such as fake tax bills, threats of legal action, or promises of refunds to trick business owners and 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.”
The alert describes several types of scams: Business-Related W-2 Scams involve cybercriminals impersonating company officials via email or text in order to obtain employee W-2 forms; Employer ID Number Scams lure companies applying for EINs onto fraudulent websites instead of the official IRS.gov site; and IRS Imposter Scams involve callers pretending to be from the Internal Revenue Service demanding immediate payment under threat of penalties or jail time. The IRS does not request payment by phone, text, email, gift cards or money apps.
Nessel’s office recommends that companies review data-sharing policies and train employees on recognizing government imposters. Victims can report incidents through the IRS Impersonation Scam Reporting webpage or call 800-366-4484. Phone scams may also be reported via the Federal Trade Commission’s Report Fraud site with “IRS Telephone Scam” noted in comments.
The Michigan Department of Attorney General operates with statewide authority to protect residents across Michigan according to the official website. The department also advances social efforts through actions against human trafficking and support for vulnerable populations according to its official website. Dana Nessel has served as Michigan’s 54th attorney general according to the department. The department focuses on public service initiatives including drafting laws like Clean Slate in 2019 for expungement opportunities as reported by its website.
Nessel’s office has also launched a Business Identity Theft initiative designed to increase awareness about various forms of identity theft affecting small businesses. For further assistance or complaints, business owners are encouraged to contact the Consumer Protection Team using resources provided by the Attorney General’s office.