IRS and Security Summit Launch New Fraud Protection Framework
The IRS and its Security Summit partners have rolled out a new anti-fraud framework designed to better protect U.S. taxpayers from identity theft and fraudulent filings. At the same time, the Federal Scholarship Tax Credit program continues to grow, with 27 states now on board. Here's what's new this week from the IRS.
New IRS Anti-Fraud Framework
The IRS and Security Summit partners announced a new structure to protect taxpayers from fraud. The Security Summit is a public-private partnership that includes the IRS, state tax agencies, tax software companies, and tax professionals.
The updated framework creates five specialized work groups that will focus on:
- Pre-filing early identification of suspicious activity
- Forecasting and tracking emerging tax fraud schemes
- Actively preventing fraud before returns are processed
- Detecting fraud and sharing intelligence across agencies
- Coordinated responses to security incidents
The enhanced information sharing between the IRS, state tax agencies, and the tax professional community should mean faster detection when someone tries to file a fraudulent return using your identity.
For expats and non-residents: if you file U.S. taxes, this framework protects you too. Tax-related identity theft can affect anyone with a U.S. tax ID (SSN or ITIN).
Federal Scholarship Tax Credit: 27 States Now Participating
As of June 2026, 27 states have joined the Federal Scholarship Tax Credit (FSTC) program, created under the One, Big, Beautiful Bill.
Starting in 2027, eligible taxpayers can claim a federal tax credit of up to $1,700 for contributions to Scholarship Granting Organizations (SGOs) — nonprofits that fund K-12 education scholarships.
To qualify for the credit, you must contribute to an SGO in a state that:
- Has officially joined the FSTC program
- Has submitted a list of qualified SGOs to the IRS
The full list of participating states is available on the FSTC page at IRS.gov.
Other Small Business News This Week
The IRS also released several other items relevant to small business owners:
- Fiscal Year 2025 Data Book now available — highlights IRS activity including 271.4 million tax returns processed and 18.6 million taxpayer calls answered.
- Treasury and IRS announced intent to issue proposed regulations on the excise tax for excessive executive compensation at tax-exempt organizations (nonprofits). Public comments due August 4, 2026.
Official IRS Sources
- IRS and Security Summit New Anti-Fraud Framework
- Security Summit
- Federal Scholarship Tax Credit (FSTC)
- 27 States Joined the FSTC Program
- IRS Fiscal Year 2025 Data Book
- Executive Compensation Excise Tax Proposed Regulations
CPA Tips
On the anti-fraud framework: If you receive an unexpected IRS notice or discover a return was filed in your name, act quickly — report identity theft at IRS.gov/IdentityTheft and request an Identity Protection PIN (IP PIN) to protect future filings.
On the FSTC: The credit starts in 2027, but planning starts now. If your state is on the list, consider whether an SGO contribution fits into your 2027 tax strategy. A $1,700 credit is a dollar-for-dollar tax reduction — not just a deduction.
For your specific situation, consider consulting a licensed CPA or tax attorney.
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