Beware: Scammers Posing as the IRS Cheat Taxpayers out of Millions

As if contact with the IRS weren’t scary enough, you now also have to be worried about scammers. But remember:

THE IRS NEVER MAKES AN INITIAL CONTACT WITH A TAXPAYER BY PHONE, E-MAIL, FAX, TEXT OR SOCIAL MEDIA!

On August 6, 2015 the Internal Revenue Service issued a warning to taxpayers to protect themselves against new variations of widespread tax scams. These scammers deceive people over the phone, through email and through the mail (on very authentic looking letterhead). They attempt to trick taxpayers into providing their personal financial info. In some cases, they attempt to scare taxpayers into making an additional tax payment that winds up in the hands of the scammer.

Since October 2013, The Treasury Inspector General for Tax Administration has received about 600,000 reports of fraudulent contact. Currently, about 4,000 people have lost roughly $20 million as a result of these scams.

Initially these scammers targeted people who they believed were the most vulnerable: the elderly, people whose first language was not English and newly-arrived immigrants. Now they have cast their nets wider to include anyone.

In the newest iteration of their telephone scam, scammers can actually alter the number that appears on a potential victim’s caller ID to make it seem like they are calling from the IRS or the Department of Motor Vehicles. They go so far as to offer false titles, badge numbers and names. They acquire personal information from the Internet so that they have enough details to make their call sound official. They may provide directions to the nearest place of business where the victims can acquire a pre-paid debit card and provide a real IRS address to mail the receipt of payment.

The IRS urges taxpayers to look out for anyone trying to scare or intimidate you into paying money or giving up your private information. The common thread between these crimes is an element of fear, where the scammers want to force a knee-jerk reaction from frightened victims. They don’t want victims to take the time to think things through. They may threaten police action, license revocation, deportation and other similar negative consequences. They might request an urgent callback through a voicemail or email.

The IRS official website is IRS.gov, not .com, .org, .net or any other designation. Taxpayers should not provide anyone information or payment in response to an email, phone call or letter. If you receive correspondence from the IRS and have any doubt about its validity, always contact the IRS directly at 800-829-1040. Be prepared for a long wait, but where your identity is concerned, it is worth the wait.

If you get a call, don’t provide any information, but get the individual’s name, badge number and phone number. Then call 1-800-366-4484 to determine if the person is an IRS employee. If the person is an IRS employee, call him/her back. If not, you have probably saved yourself some money. You should also report the phishing attempt at phishing@irs.gov.

Remember the IRS will never:

• Threaten to have you arrested for non-payment.
• Demand that you make a payment without giving you the opportunity for appeal or question the amount you owe.
• Require a pre-paid debit card as a method of payment.
• Ask for your debit or credit card number over the phone.
• Angrily demand immediate payment over the phone.

If you feel that you have been targeted by one of these scammers:

• Call the IRS if you know you owe taxes at 800-829-1040 and work with real IRS employees to resolve any payment issues.
• Call the Treasury Inspector General for Tax Administration at 800-366-4484 to report the scam if you do not owe taxes (or do not believe that you do).
• Contact the Federal Trade Commission and add “IRS Telephone Scam” in the comments of your complaint.

You may also contact Myerson & Myerson CPAs’ offices for information in the event you have concerns about your taxes or interactions with the IRS.