In IR-2016-123 the IRS warned taxpayers and tax professionals of fake emails containing a tax bill in connection with the Affordable Care Act (ACA). The warning comes in response to the IRS receiving numerous reports across the US of scammers emailing fraudulent copies of tax year CP2000 notices requesting payment of the tax owed. The IRS has reported the scam to the Treasury Inspector General for Tax Administration for investigation.

A CP2000 is generated by the IRS Automated Underreporter Program when income reported from third-party sources such as an employer does not match the income reported on the individual's federal income tax return. The notice provides extensive instructions to taxpayers about what to do if they agree or disagree that additional tax is owed.

The notice also requests that a check be made out to "United States Treasury" if the taxpayer agrees additional tax is owed. Or, if taxpayers are unable to pay, it provides instructions for payment options such as installment payments.

The CP2000 is a notice that is commonly mailed to taxpayers through the United States Postal Service, and the IRS emphasizes that it is never sent out by email.

How to identify a fraudulent CP2000

— These notices are sent electronically, even though the IRS does not initiate contact with taxpayers by email or through social media platforms

— The CP 2000 notices appear to be issued from an Austin, Texas, address

— The underreported issue is related to the ACA requesting information regarding 2014 coverage;

— The payment voucher lists the letter number as 105C

The fraudulent CP2000 notice includes a payment request that taxpayers mail a check made out to "I.R.S." to the "Austin Processing Center" at a Post Office Box address. This is in addition to a "payment" link within the email itself.

Ernst & Young LLP insights

The IRS suggests that taxpayers and tax professionals take the following steps if they receive a CP2000 notice:

— If you have received a scam email, forward it to phishing@irs.gov and then delete it from your email account.

— Do a keyword search on IRS.gov for any notice you receive. Taxpayers who receive a notice or letter can view explanations and images of common correspondence on IRS.gov at Understanding Your IRS Notice or Letter.

— Confirm that your CP2000 notice received in the mail is real by going to Understanding Your CP2000 Notice, which includes an image of a legitimate notice.

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