IRS Urges EIN Protection and Scam Awareness Ahead of Disaster Season

Why Your EIN Matters

Much like a Social Security number for individuals, your EIN is a critical identifier for your business. If it falls into the wrong hands, fraudsters can use it to file false returns, open unauthorized lines of credit, or commit identity theft under your business’s name.

To help prevent misuse, the IRS advises:

• Promptly submitting Form 8822-B to update the IRS whenever there’s a change in your business’s responsible party or address.
• Limiting access to your EIN internally and ensuring it’s only shared with trusted parties when absolutely necessary.

Disaster Season Scams: A Timely Warning

In the wake of natural disasters, bad actors often exploit vulnerability and confusion by posing as IRS agents offering help with casualty loss claims. These impersonation scams can result in stolen information, fraudulent refund claims, or financial loss.

Be wary of:

• Unsolicited calls, emails, or messages claiming to be from the IRS.
• Promises of “expedited” refunds or disaster assistance requiring personal or business data.
• Pressure tactics or threats of legal action — tactics the IRS does not use.

Remember: the IRS initiates most communication by mail and never demands payment or sensitive information over the phone or online.

Strengthen Internal Defenses

Employers are also being urged to double down on internal safeguards. This includes:

• Regular employee training on phishing awareness, secure password practices, and how to recognize suspicious communications.
• Implementing robust internal controls, such as restricted access to financial data, audit trails, and multi-factor authentication across systems.
• Designating a point person or team for responding to potential security incidents or tax-related scams.

If Something Seems Off — Report It

The IRS has established multiple channels for reporting fraud, scams, and data breaches:

• Form 14039-B: For businesses affected by identity theft.
• Form 14242: To report tax promoters or abusive schemes.
• IRS Identity Protection Specialized Unit: 800-908-4490
• IRS Whistleblower Office: For tips that may qualify for monetary awards.

Reporting suspicious activity not only helps you protect your business — it also helps strengthen the broader tax system.

Your Next Best Step? Stay Vigilant, Stay Connected.

At Beaird Harris, we’re committed to helping you protect what you’ve built. If you have questions about safeguarding your EIN, responding to potential fraud, or reinforcing your internal data security policies, don’t hesitate to reach out.

We’re here to help you stay ahead — and stay secure.