CERCA Fall 2024 Conference: Unveiling the Fraud Supply Chain, First-Party Fraud, IRS Task Force Against Scams, and Innovation Through the IRA

As a key forum and liaison between the IRS and industry, the Council for Electronic Revenue Communication Advancement (CERCA) plays a key role in enhancing electronic filing and advanced electronic tax administration.

The Makpar team recently attended CERCA Fall 2024 Conference in Arlington, VA, which underscored the evolving landscape of fraud and the proactive measures being implemented to combat it.

The event featured insights from several IRS leaders including Commissioner Danny Werfel; Fumi Tamaki, Taxpayer Experience Officer; David Padrino, Transformation and Strategy Officer at the IRS – and other thought leaders. Following is a summary of the highlights from the CERCA Fall 2024 Conference.

Unveiling the Fraud Supply Chain

A renowned expert in cybersecurity and criminology, Dr. David Maimon delivered a compelling presentation on the intricacies and challenges behind supply chain fraud. He highlighted how fraudsters are increasingly leveraging public social media platforms, in addition to the dark web, to distribute and facilitate fraudulent activities. This shift underscores the need for heightened vigilance across all digital channels. 

Emerging Concerns: First-Party Fraud 

While identity fraud constitutes approximately 40 percent of all fraud cases faced by the U.S. Treasury Department, there is a growing focus on first-party fraud. This type of fraud involves individuals misrepresenting their own information for financial gain, presenting new challenges for detection and prevention.

IRS Task Force Against Scams

In response to the escalating fraud landscape, the IRS established a dedicated task force aimed at identifying and mitigating scam activities. This initiative reflects the agency's commitment to safeguarding taxpayers and maintaining the integrity of the tax system. 

Innovation Through the Inflation Reduction Act

The Inflation Reduction Act (IRA) has empowered the IRS with the budget and political support necessary to address critical issues, particularly in security. Beyond enhancing security measures, the IRS is investing in data-driven infrastructure, including advanced analytics and artificial intelligence, to improve operational efficiency. A significant emphasis is also being placed on enhancing the customer experience for taxpayer-facing applications and initiatives.

The Impact of Upcoming Elections

The conference also brought attention to the potential implications of the upcoming elections on fiscal budgets and tax policies. The outcomes will inevitably influence the IRS, taxpayers, and all stakeholders involved in the tax administration process.

In FY25, the IRS is squarely focused on countering fraud on many levels. The CERCA Fall 2024 Conference provided the ideal forum for sharing key insights and advancing the current and future state of tax administration, emphasizing the importance of innovation, security, and adaptability in an ever-evolving landscape.

The Makpar team fully supports the IRS’ vision for countering fraud, while also enhancing innovation capabilities through the IRA. Contact Makpar here for more information on how we can help boost your agency’s digital transformation efforts.