Thank you, Mary, for outlining these critical due diligence steps. I completely agree that heightened vigilance is necessary, especially when dealing with foreign sellers who exhibit these red flags. The requirement for multiple forms of ID, video call verification, and signature matching are all essential safeguards in preventing fraud.
The point about ensuring passports are properly certified by an embassy when they cannot be sent to the U.S. is especially important-it's an extra layer of security that can make a significant difference. With fraud becoming more sophisticated, collaboration and adherence to these guidelines are crucial in protecting all parties involved.
Thanks again for sharing these insights -it's always helpful to see real-world examples of fraud detection in action.
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Kat Rodgers
Foreign Tax CPA, LLC
Cocoa Beach FL
+1 (321) 784-8329
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Original Message:
Sent: 03-24-2025 12:52
From: Mary Enzi
Subject: π¨ Combatting ITIN Fraud: Our Commitment to Security and Accuracy π¨
In agreement with Kat, we have specific due diligence guidelines from the IRS that we must adhere to. Our experience shows that if a "foreign seller" is eager to sell, particularly a piece of land, is willing to lower the price, is in a hurry to finalize the transaction, and provides any form of identification other than a current passport, it raises significant concerns.
We require two or even three forms of identification, conduct inquiries during video calls, and it is crucial to verify that the signatures on all documents match. With the increase in various types of fraud, it is essential for all of us to collaborate to mitigate these risks.
Furthermore, if the seller is located in a foreign country and cannot send their passport to the U.S. for verification, it is essential that they have the passport certified by their embassy.
Thank you Kat for sharing the video; it was certainly interesting, and I'm pleased the title agent was able to identify the fraud in this instance.
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Mary Enzi CAA
Tax Solutions β FIRPTA Consulting
[email protected]
+1 (281) 578-1040
Katy TX
Original Message:
Sent: 03-19-2025 15:58
From: Kat Rodgers
Subject: π¨ Combatting ITIN Fraud: Our Commitment to Security and Accuracy π¨
Anyone with a tax filing obligation but ineligible for a Social Security number (SSN) must apply for an Individual Taxpayer Identification Number (ITIN). While ITINs are crucial for tax compliance, they also play a role in credit histories and bank records, impacting things like backup withholding and the Bank Secrecy Act.
However, over the past decade, the IRS has struggled to address key issues in its ITIN program, particularly regarding fraud prevention. During peak tax seasons, bottlenecks and outdated processes have allowed fraudulent schemes to thrive, leaving the tax system vulnerable.
The IRS's reactive approach to ITIN procedures-such as the 2012 change that required only original or certified documents-has only added to the confusion and burden for legitimate applicants. This shift has also made it harder for the IRS to detect and prevent fraud effectively.
As a Certified Acceptance Agent (CAA), our office is dedicated to preventing fraud by strictly verifying passports and other identification documents. We use a rigorous verification process to identify potential fraud and ensure the integrity of the ITIN application. This is crucial not just for the safety of the applicant but also for the broader tax system, as fraudulent applications can lead to tax evasion and financial crimes.
If you have concerns about potential fraud or need assistance with your ITIN application, we are here to help. Don't hesitate to reach out for guidance and support.
Please take a moment to watch this video from @NBCNews, which highlights the growing sophistication of AI-generated videos:
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Janet Noack
Foreign Tax CPA, LLC
Cocoa Beach FL
+1 (321) 784-8329
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