Michigan Attorney General Dana Nessel urged small business owners on April 15 to be cautious of tax scams targeting entrepreneurs. Nessel reissued her alert, “Tax Scams Targeting Small and Midsized Businesses,” to highlight the risks of financial fraud that can occur through deceptive schemes.
The warning comes as scammers increasingly use tactics such as fake legal threats, false tax bills, and promises of refunds to trick business owners or employees. The issue is important because these scams can compromise sensitive information and result in financial losses for Michigan businesses.
“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.”
Nessel’s alert describes several types of frauds, including W-2 scams where cybercriminals pose as company officials seeking employee tax information, Employer Identification Number (EIN) scams involving fraudulent websites, and IRS imposter scams in which callers falsely claim taxes are owed. The alert advises companies to review internal policies for sharing data and implement oversight when distributing employee information.
Businesses are encouraged to report suspected IRS impersonation attempts via the IRS Impersonation Scam Reporting webpage or by calling 800-366-4484. Phone-based fraud should be reported at the Federal Trade Commission’s Report Fraud site with a note indicating “IRS Telephone Scam.” Unsolicited emails claiming affiliation with the IRS should also be reported, along with any email compromises submitted to the FBI’s Internet Crime Complaint Center (IC3).
The Michigan Department of Attorney General advances social efforts through actions against human trafficking and support for vulnerable populations according to its official website. The department also focuses on serving residents through public service initiatives and protection programs according to its official website. Dana Nessel has served as Michigan’s 54th attorney general according to its official website.
The department exercises statewide authority throughout Michigan in order to safeguard residents according to its official website, including influencing policy by drafting laws such as the Clean Slate law in 2019 that expanded expungement opportunities according to its official website.
Looking ahead, Nessel’s office continues outreach with a Business Identity Theft initiative aimed at raising awareness about identity theft forms affecting small enterprises. For more assistance or complaints regarding business-related scams, individuals can contact the Consumer Protection Team at the provided phone numbers or online form.