Taxpayers should be on the lookout for a new, email-based phishing scam now circulating that targets Department of Defense military members, retirees and civilian employees. The email appears to come from Defense Finance and Accounting Services (DFAS) and displays a .mil email address. The email states that those receiving disability compensation from the Department of Veterans Affairs (VA) may be able to obtain additional funds from the IRS. Email recipients are then asked to send various VA and IRS documents containing their personal and financial information, such as copies of VA award letters or their income tax returns, to an address in Florida. Of note, the Commissioned Corps does not use DFAS so any received email of this nature should be deleted without clicking on any links or items in the email, nor sending any documents to any unfamiliar source(s).

The information on these documents is then used by the scammers to commit identity theft. Typically, identity thieves use someone's personal data to empty the victim's financial accounts, run up charges on the victim's existing credit cards or apply for new loans, credit cards, services or benefits in the victim's name.

http://www.irs.gov/newsroom/article/0,,id=97322,00.html