IRS Warns Taxpayers to Guard Against New Tricks by Scam Artists
A few weeks ago Karen received a call on her cell phone. A gentleman said he was calling from “Microsoft” to fix her computer. She told him he needed to talk with “her techie husband” and handed me the phone. I promptly hung up. She wanted to string him along. I did not want to waste my time.
The number and sophistication of scams seem to be increasing. A popular one is a phone call from the IRS demanding payment for overdue taxes.
Two weeks ago the Internal Revenue Service issued another warning to taxpayers to remain on high alert and protect themselves against the ever-evolving array of deceitful tactics scammers use to trick people.
These schemes – which can occur over the phone, in emails or through letters with authentic-looking letterhead – try to trick taxpayers into providing personal financial information or scare people into making a false tax payment that ends up with the criminal.
The Treasury Inspector General for Tax Administration (TIGTA) has received reports of roughly 600,000 contacts since October 2013. TIGTA is also aware of more than 4,000 victims who have collectively reported over $20 million in financial losses as a result of tax scams.
Scammers posing as IRS agents first targeted those they viewed as most vulnerable, such as older Americans, newly arrived immigrants, and those whose first language is not English. These criminals have expanded their net and are now targeting virtually anyone.
In a new variation, scammers alter what appears on your telephone caller ID to make it seem like they are with the IRS or another agency such as the Department of Motor Vehicles. They use fake names, titles, and badge numbers. They use online resources to get your name, address, and other details about your life to make the call sound official. They even go so far as copying official IRS letterhead for use in email or regular mail.
Brazen scammers will even provide their victims with directions to the nearest bank or business where the victim can obtain a means of payment such as a debit card. And in another new variation of these scams, con artists may then provide an actual IRS address where the victim can mail a receipt for the payment – all in an attempt to make the scheme look official.
These scam artists often angrily threaten police arrest, deportation, license revocation or other similarly unpleasant things. They may also leave “urgent” callback requests, sometimes through “robo-calls,” via phone or email. The emails will often contain a fake IRS document with a telephone number or email address for your reply.
It is important to remember the official IRS website is IRS.gov. Taxpayers are urged not to be confused or misled by sites claiming to be the IRS but ending in .com, .net, .org or other designations instead of .gov. Taxpayers should never provide personal information, financial or otherwise, to suspicious websites or strangers calling out of the blue.
5 things scammers often do that the real IRS would never do
The IRS will never:
- Angrily demand immediate payment over the phone, nor will the agency call about taxes owed without first having mailed you a bill.
- Threaten to bring in local police or other law enforcement groups to have you arrested for not paying.
- Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
- Require you to use a specific payment method for your taxes, such as a prepaid debit card.
- Ask for credit or debit card numbers over the phone.
Here’s what you should do if you think you’re the target of an IRS impersonation scam:
- If you do owe taxes, call the IRS at 1-800-829-1040. IRS workers can help you with a payment issue.
- If you know you don’t owe taxes or do not immediately believe that you do, you can report the incident to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484.
- If you’ve been targeted by any scam, be sure to contact the Federal Trade Commission and use their FTC Compliant Assistant. Please add “IRS Telephone Scam” to the comments of your complaint.
For more information on reporting tax scams, go to IRS.gov and type “scam” in the search box.
This information would be a good reminder to send out to your clients and prospects.
Have you been targeted with a scam? What did you do? Leave a comment on the site.