Phishing for Your Bonds

July.18.2022

The Internal Revenue Service (“IRS”) has an active program of auditing tax-exempt bonds, and conducts those audits in a manner intended to ensure confidential information is not improperly disclosed. As part of those efforts, the IRS’s Tax Exempt and Governmental Entities (TEGE) Division has established its own secure electronic messaging service that may be used to securely transmit and receive data. However, we’ve recently seen emails purporting to be from the IRS regarding the use of its TEGE secure messaging service to respond to an audit of tax-exempt bonds, but that are actually phishing scams intended to steal data from the recipients. Issuers and borrowers should always be on the lookout for phishing or other suspicious emails, whether those appear to be from the IRS or other entities.

If you or your organization experience a data security breach or other cybersecurity incident, Orrick’s nationally ranked Cyber, Privacy and Data Innovation practice is available to help. Our lawyers maintain a 24x7 hotline to assist in cybersecurity incident responses, and regularly direct incident investigations, coordinate notifications and disclosure of breaches, and defend the litigation that follows. The group also helps issuers and borrowers implement cybersecurity governance programs and risk mitigation strategies, as well as to conduct exercises to prepare for cybersecurity incidents, and address cybersecurity issues in transactions.

If you do receive a legitimate notice from the IRS of an audit of tax-exempt bonds, it is important to respond timely, and please contact a member of Orrick’s public finance tax group for assistance.

If you are experiencing a cybersecurity crisis or need help determining if your network has been compromised, please contact Orrick’s Cybersecurity Incident Crisis Hotline by emailing us at [email protected] or call our 24/7 hotline:

United States (U.S.) and Canada
+1 800 972 9306 (Toll-free)
+1 202 339 8544 (Toll)

United Kingdom (UK)
+ 0800-260-5687 (Toll-free)
+44 2078624808 (Toll)

Authors

John Stanley Partner, Tax, Public Finance

San Francisco

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D:+1 415 773 5713
E: [email protected]

Practice:

Finance Sector
Tax
Public Finance

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John Stanley Partner

San Francisco

In his municipal finance practice, John has served as bond counsel, special tax counsel and underwriter’s counsel for a variety of transactions, including particularly governmental, airport, and public power financings. John has represented issuers and borrowers before the Internal Revenue Service in connection with audits, private letter rulings, and requests pursuant to the voluntary closing agreement program (VCAP).

John has worked with issuers to establish post-issuance compliance programs tailored to their specific financings, and also has significant experience with tax-exempt commercial paper programs for both governmental and exempt facilities. John is a regular speaker at various conferences focused on public finance and tax, including conferences organized by the National Association of Bond Lawyers, the American Bar Association Tax Section, and the California Bond Buyer Conference. John is serving as Chair of the National Association of Bond Lawyers' "The Institute" conference in 2024.

Joseph C Santiesteban Partner, Cyber, Privacy & Data Innovation, California Consumer Privacy Act

Seattle

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D:+1 206 839 4352
E: [email protected]

Practice:

Technology & Innovation Sector
Cyber, Privacy & Data Innovation
California Consumer Privacy Act
Strategic Advisory & Government Enforcement (SAGE)

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Joseph C Santiesteban Partner

Seattle

He brings significant experience advising companies – from one of the largest telecommunications providers to leading entertainment companies to startups on the cutting-edge of AI and more – on the full cycle of an incident. He also advises companies and executives in connection to regulatory investigations, class actions, enforcement actions, and other disputes that frequently flow from privacy and cybersecurity incidents.

Joe helps clients respond quickly and with integrity to protect their brand, build trust and mitigate legal risk. He is highly skilled at directing incident investigations, analyzing potential claims and defenses, examining potential notification obligations and advising on effective communications strategies. He draws on this experience to help companies proactively prepare for an incident through creative strategies that foster engagement and collaboration between legal, security, communications and leadership teams. This includes building and improving incident response programs through response plans, simulated incidents, threat workshops, and training. In addition, Joe assists clients in practically evaluating the legal risk of security decisions in a variety of transactions and across the product lifecycle.

He also provides strategic advice to cybersecurity companies, including those looking to push technological and defense boundaries in cyber defense, incident response, and threat intelligence. This includes helping companies maximize their security offerings by navigating the Computer Fraud and Abuse Act (CFAA), the Electronic Communications Privacy Act (ECPA), and the Federal Wiretap Act, as well as state law analogs.

Joe serves on the Orrick’s Finance and Audit and Pro Bono Committees. A leader and advocate for diversity and inclusion initiatives, Joe is the co-head of Orrick’s Latinx Inclusion Network and was selected as a 2024 Rising Star by the Minority Corporate Counsel Association (MCCA). He was also named to Lawdragon's 2024 500 X Next Generation Rising Stars List and a member of the Washington Latino Bar Association and the Hispanic National Bar Association.