A group of senators on both sides of the aisle is asking the Internal Revenue Service's new commissioner, Daniel Werfel, to warn taxpayers and tax professionals about the emerging threat of tax scams produced by artificial intelligence programs and chatbots like ChatGPT.
AI tools are creating highly persuasive tax scams
Sen. Chuck Grassley, R-Iowa, Maggie Hassan, D-New Hampshire, Ron Wyden, D-Oregon, and James Lankford, R-Oklahoma, sent a letter Monday to Werfel expressing growing alarm about the possible use of AI tools to create persuasive, tailored scams to steal money from taxpayers and elicit their personal financial information.
They urged the IRS to educate taxpayers and tax pros about the existence of AI-generated tax scams and how to avoid becoming a victim. They also asked whether the IRS anticipates that such scams will become more commonplace and how they might evolve over time.
"In previous tax filing seasons, many scam messages could be identified by spelling mistakes, grammatical errors, and inaccurate references to the Tax Code," the senators wrote. "By contrast, tax scams generated by new AI tools are professionally composed and specifically tailored to trick vulnerable taxpayers."
Senators are urging the IRS to counter these AI-generated tax scams
Given the emerging threat to taxpayers, the lawmakers urged the IRS to use all the tools at its disposal to counter AI-generated tax scams.
"According to recent reporting, one cybersecurity expert demonstrated how ChatGPT can be used to generate scam messages from the IRS targeting families, older Americans, and small businesses," the letter continued. "For example, ChatGPT generated a fake email from the IRS claiming that, in order to receive a $1,450 tax refund, an individual needed to respond with personal financial information."
The IRS may lose some of the $80 billion in recent funding
Even as the request went out to Werfel this week, the Biden administration and Republicans in Congress are facing a debt limit showdown, after House Republicans passed legislation last week that would lift the debt ceiling only in return for spending cuts, including the repeal of much of the $80 billion in extra funding provided to the IRS in last year's Inflation Reduction Act for increased tax enforcement.
The IRS has long warned taxpayers and tax professionals about new and emerging email scams, especially during tax season. This year, the IRS included "phishing" (through email) and "smishing" (through text message) on its annual Dirty Dozen tax scams list.
We all need to stay alert to these AI-generated tax scams
This has the potential to get very complicated very quickly. AI can be used to generate realistic-looking images (i.e., documents) that look real but aren't, as well as replicate voices, and that's the tip of the iceberg. We all need to stay alert to this potential for scamming of all kinds and try to stay ahead of the curve on this.
My team and I are here to help you discern potential scams if they land in your inbox or on your phone, etc. And if you hear from the IRS (real or fake), don't assume it's a scam and ignore it. But remember, the IRS will never ask you for personal/confidential information over the phone or online. Your safest, best bet is to contact us if you encounter something that is worrisome or doesn't make sense. We're always here to help.
Contact me by one of the methods below in the blue box, or you can email me at Larry@TaxProblemSolver.com and we can dive into your specific issues and solve them. You can also click here to book a free consultation with me or a member of my team.
Would You Like to Find Out What Your
Next Best Steps Should Be?
Choose one of the 3 FREE contact methods that is easiest for you.
Schedule a Call with Us
Click the calendar button below to view our appointment calendar, and choose a day & time, and we’ll call you then.
We look forward to your free consult!
Call Us Now
Click the phone button below to either "click to call" or direct dial a number to speak with us right now.
We look forward to speaking with you!
9-Secrets You Need to Know
When the IRS is after you, you need to be informed. What you say to the IRS can be used against you.
Get My 9 Secrets email series now. I'll also add you to my newsletter.
