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, 稅務, Public Finance

San Francisco

See my bio

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

Practice:

Finance Sector
稅務
Public Finance

vCard

See full bio

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

See my bio

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)

vCard

See full bio

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 clients regarding regulatory investigations, class actions, and contract disputes that frequently flow from privacy and cybersecurity incidents.

His goal is to help clients respond quickly and with integrity to protect their brand, build trust and mitigate legal risk. He is highly adept at directing incident investigations, analyzing potential claims and defenses, examining potential notification obligations and advising on communications strategies that build trust and engagement.

Joe is committed to using these experiences to finding creative and engaging strategies to help companies proactively prepare for an incident and mitigate cybersecurity legal risk. This includes helping to build and improve incident response programs through incident response plans, simulated incidents, threat workshops, and training. It also includes assisting clients to practically evaluate legal risk of security decisions in a variety of transactions and across the product lifecycle. He is driven by a desire to evolve what it means to be a cybersecurity lawyer in the face of rapidly evolving technologies and laws. As a leader, he strives to create spaces where people are valued and solve problems creatively and collaboratively.

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 Committee and Pro Bono Committee. A leader and advocate for diversity and inclusion initiatives, Joseph is the co-head of the Latinx affinity group at Orrick and served as a fellow for the Leadership Counsel on Legal Diversity. He is also a member of the Washington Latino Bar Association and the Hispanic National Bar Association.