Tim’s Tax News on the Tenth – June 2020
Timothy M. Hughes • June 10, 2020
IRS SEES COVID-19 FRAUD SCHEMES EMERGE
The IRS on June 8, 2020, warned taxpayers to guard against tax fraud and other related financial scams related to COVID-19. In the last few months, the IRS Criminal Investigation division (“CI”) has seen a variety of Economic Impact Payment (“EIP”) scams and other financial schemes arise looking to take advantage of unsuspecting taxpayers. CI continues to work with law enforcement agencies both domestically and abroad to investigate the criminals perpetrating these crimes.
Criminals are using the COVID-19 EIPs as cover for schemes to steal personal information and money. Scams related to COVID-19 are not just limited to stealing EIPs from taxpayers. CI has already seen scams related to the organized selling of fake at-home test kits, offers to sell fake cures, vaccines, pills, and advice on unproven treatments for COVID-19. Other scams purport to sell large quantities of medical supplies through the creation of fake shops, websites, social media accounts, and email addresses where the criminal fails to deliver promised supplies after receiving taxpayers’ funds.
Some of the COVID-19 related scams involve setting up fake charities and then soliciting donations for individuals, groups, and areas affected by the disease. Some criminals are offering opportunities to invest early in companies working on a vaccine for the disease promising that the “company” will dramatically increase in value as a result. These promotions are often styled as “research reports,” make predictions of a specific “target price,” and relate to microcap stocks, or low-priced stocks issued by the smallest of companies with limited publicly available information.
The CI noted it has seen a tremendous increase in phishing schemes utilizing emails, letters, texts, and links. These phishing schemes are using keywords such as “Corona Virus,” “COVID-19”, and “Stimulus” in varying ways. These schemes are blasted to large numbers of people in an effort to get personal or financial information including but not limited to account numbers and passwords. Most of these new schemes are actively playing on the fear and unknown of the virus and taxpayers’ need for the stimulus payments.
If you would like more details, please do not hesitate to call our office. Our office has been successful in helping taxpayers with IRS and IDOR collection problems for over 28 years. If you have a tax or debt problem, please contact me at 847-705-9698 or thughes@lavellelaw.com and find out how we can help you.
Are you receiving the Lavelle Law eNewsletter? Sign up today and receive valuable updates and perspectives on a wide range of legal issues: http://goo.gl/pjeJkm
Lavelle Law, Ltd. is registered with the Illinois Department of Financial and Professional Regulation as an approved continuing education provider for CPE for CPAs and Enrolled Agents. If your organization is seeking CPE courses in the area of Business Law, Innocent Spouse Relief, IRS Collections, Tax Scams (including ID Theft), or other areas in tax law that can be taught at your office, please contact me at thughes@lavellelaw.com.
More News & Resources
Lavelle Law News and Events
Taylor Swift’s engagement to Travis Kelce has made a big splash in the news. In this podcast, Lavelle Law family law attorneys Joe Olszowka and Kristina Buchthal Alkass discuss the importance of prenuptial agreements - and not just for the wealthy.
The U.S. Treasury Department issued a preliminary list of nearly 70 jobs that qualify for “no tax on tips.” The occupations include a wide range of services spanning from Rickshaw drivers to digital content creators.
On August 20, 2025, the First District of the Illinois Appellate Court decided Chicago Title Land Trust Co. v. Watkin, 2025 IL App (1st) 241354 (August 20, 2025). At issue in Watkin was whether the expiration of the statute of limitations barring enforcement of a mortgage also extinguishes the mortgage lien.
The Illinois General Assembly has updated the Probate Act of 1975 to improve the small estate affidavit process for settling estates without formal probate. Effective immediately, this amendment offers significant benefits for Illinois residents managing a loved one's estate.
A common consideration in a divorce case is who will get to keep the family pet. Illinois has a specific law that addresses this issue. In this video, divorce attorney Joe Olszowka explains the various factors the court considers when there is a pet involved in an Illinois family law case.
Lavelle Saves Homeowner from Real Estate Tax Bill Disaster - In the end, our client clawed back ownership of his family’s home and was made whole on the attorney fees he was forced to pay to rectify this unfortunate situation.
Recently, OEMs like Tesla and Rivian implemented a direct-to-consumer approach that many state motor vehicle dealer laws are intended to prohibit. On May 27, 2025, the National Automobile Dealers Association (NADA) submitted a Public Comment, defending state franchise laws.
Join Lavelle Law for an informative presentation tailored to individuals seeking expert guidance on critical family law matters. Our experienced family law attorneys will break down three key areas — prenuptial/postnuptial agreements, collaborative divorce, and child custody.
On August 7, 2025, the IRS announced that, as part of its phased implementation of the July 4th One Big Beautiful Bill Act, there will be no changes to certain information returns or withholding tables for tax year 2025 related to the new law. The IRS outlined key relevant changes to tax filers effective for '25 - '28.
Due to Lavelle’s extensive knowledge in estate and gift tax, we were able to generate a combined federal and Illinois estate tax savings of $1 million for the client.
