June 2017 Archives

Find out how marriage affects your clients' federal taxes by watching this YouTube video. 

Watch this and other videos on the IRS YouTube Channel  

The Houston Bar Association has filed a lawsuit seeking to shut down a fake law firm website that is using the pictures of real lawyers in an apparent scam targeting elderly people.

The fake law firm is called Walsh & Padilla, and it purports to offer estate planning services, the Houston Chronicle reports.

In reality, the website appears to be operated from South Africa, and it uses photos of lawyers taken from real law firm websites, the suit says.

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Fugitive lawyer Eric C. Conn fled the country using a fake passport and help from someone overseas who has given him a job to support himself while on the lam, Conn told the Herald-Leader in an email exchange over the weekend.

Conn, once one of the top disability attorneys in the nation, flew to a country that doesn't have an agreement to extradite people wanted for crimes in the United States, he told the newspaper.

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The email's origin is unknown but likely issued by cybercriminals who could be operating from the U.S. or abroad. The email is unusual for the amount of sensitive preparer data that it seeks. This preparer information will enable the thieves to steal client data and file fraudulent tax returns. 

The IRS reminds all tax professionals that legitimate businesses and organizations never ask for usernames, passwords or sensitive data via email. Nor should a preparer ever provide such sensitive information via email if asked. 

All tax professionals should be aware that their e-Services credentials, the Electronic Filing Information Number (EFIN), the Preparer Tax Identification Number (PTIN) and their Centralized Authorization File (CAF) number are extremely valuable to identity thieves.Anyone handling taxpayer information has a legal obligation to protect that data.

Because the IRS, state tax agencies and the tax industry, acting in partnership as the Security Summit, are making inroads on individual tax-related identity theft, cybercriminals increasingly target tax professionals. Thieves are looking for real client data so they can better impersonate the taxpayer when filing fraudulent returns for refunds. 

The fake email uses the name of a real U.S.-based preparer education firm. Here's the text as it appears in phishing emails being sent to tax professionals: In our database, there is a failure, we need your information about your account.

In addition, we need a photo of the driver's license, send all the data to the letter. Please do it as soon as possible, this will help us to revive the account.

*Company Name *

*EServices Username *

*EServices Password *

*EServices Pin *

*CAF number*

*Answers to a secret question*

*EIN Number *

*Business Name 

*Owner/Principal Name *

*Owner/Principal DOB *

*Owner/Principal SSN * 

*Prior Years AGI 

Mother's Maiden Name

If you received or fell victim to the scam email, forward a copy to phishing@irs.gov. If you disclosed any credential information, contact the e-Services Help Desk to reset your password. If you disclosed information and taxpayer data was stolen, contact your local stakeholder liaison.

A recent survey (PDF) of federal judges, prosecutors, defenders and probation offices by the Federal Judicial Center found that nearly 700 witnesses and informants perceived as snitches had been threatened, wounded or killed over a three year period.

U.S. District Judge Lewis Kaplan of Manhattan told the U.S. Judicial Conference's criminal rules committee in April that PACER is part of the problem, according to the Wall Street Journal account. Though federal inmates don't have PACER access, they often get information from others.

"Anonymous remote public access to PACER is a source of much of the information that gets into prisons about who is cooperating," Kaplan said.

Beware of a new scam linked to the Electronic Federal Tax Payment System (EFTPS), in which fraudsters call to demand an immediate tax payment through a prepaid debit card. This scam is being reported across the country.

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The Internal Revenue Service today warned people to beware of a new scam linked to the Electronic Federal Tax Payment System (EFTPS), where fraudsters call to demand an immediate tax payment through a prepaid debit card. This scam is being reported across the country, so taxpayers should be alert to the details.

In the latest twist, the scammer claims to be from the IRS and tells the victim about two certified letters purportedly sent to the taxpayer in the mail but returned as undeliverable. The scam artist then threatens arrest if a payment is not made through a prepaid debit card. The scammer also tells the victim that the card is linked to the EFTPS system when, in fact, it is entirely controlled by the scammer. The victim is also warned not to contact their tax preparer, an attorney or their local IRS office until after the tax payment is made.

"This is a new twist to an old scam," said IRS Commissioner John Koskinen. "Just because tax season is over, scams and schemes do not take the summer off. People should stay vigilant against IRS impersonation scams. People should remember that the first contact they receive from IRS will not be through a random, threatening phone call."

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Gov. Andrew Cuomo on Thursday afternoon announced that he would nominate Justice Paul Feinman to the State Court of Appeals seat left vacant by the death of Sheila Abdus-Salaam.

In an interview on NY1, the Democratic governor called Feinman "an extraordinary human being and will be a great addition on that court."

If confirmed by the State Senate, Feinman would become the first openly gay judge to serve on the state's highest court.

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Federal Judge Xavier Rodriguez denied key parts of the San Antonio Zoo's motion for summary judgement, holding that the Animal Legal Defense Fund had provided sufficient facts demonstrating the zoo may be violating the Endangered Species Act (ESA) by holding an endangered elephant, Lucky, in conditions that injure her both physically and psychologically. The zoo must now defend its treatment of Lucky in a full trial, currently scheduled to begin on Oct. 2, 2017.

The ruling, released Friday, June 9, also strongly rejected the zoo's legal argument that its purported compliance with the Animal Welfare Act shields it from liability under the ESA. This is a significant legal ruling that has broad application to any endangered species in captivity, including Lolita the orca, whose captivity at the Miami Seaquarium in a shockingly tiny tank has been the subject of litigation for years.

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The U.S. Supreme Court on Monday declined to widen the reach of a federal law targeting abusive debt-collection tactics such as harassment and threats, ruling it does not cover companies that buy debt, sometimes for pennies on the dollar, and then collect it.

The justices, in a 9-0 ruling, upheld a lower court's dismissal of a proposed consumer class action lawsuit against Santander Consumer USA Holdings Inc over allegations it violated a law called the Fair Debt Collection Practices Act.

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Full Opinion: 

A Connecticut law makes it the first state to provide animals with court-appointed advocates to represent them in abuse and cruelty cases, similar to laws that provide for victim's or children's advocates.

Seven lawyers and a law professor in the state are approved as volunteer advocates, the AP reports. Judges have discretion on whether to appoint an advocate; defense attorneys and prosecutors may request them.

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Animal law is a rapidly growing field. The article, citing the Animal Legal Defense Fund, notes "nine law schools had courses in animal law in 2000; by 2015, that number was 151."

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