Fake IRS Phone Calls Tops List of Tax Scams

Earlier this week I received a call from a client who came home from work to find the following message on his voicemail:

"Hello, we have been trying to reach you. This call is officially a final notice from the IRS, Internal Revenue Service. The reason of this call is to inform you that IRS is filing a lawsuit against you."

Fortunately, my client knew better than to call the number in the message.  Instead he called me to confirm this really was a scam.  But not everyone is so fortunate.

“Oh I would never fall for a scam like that”, you say?  Hopefully not.  But sadly many have.  

In fact the IRS impersonation phone scam has claimed nearly 3,000 victims who have collectively paid over $14 million, according to a recent TIGTA report. 

Phones are ringing in every state.  Victims are told they owe money to the IRS and it must be paid promptly through a pre-loaded debit card or wire transfer.

If the victim refuses to cooperate, they are threatened with arrest, lawsuit, deportation, or suspension of a business or driver’s license.

These calls can be so intimidating that many start looking for an attorney and others rush out to load up thousands of dollars on prepaid cards.  

It’s no accident that calls are popping up during tax season when many are stressed out about their finances; scammers are looking for vulnerable people who don’t know how things work. 

So how do things work with the IRS?

Five Easy Ways to Spot Suspicious Calls

Here are five things the scammers often do that the IRS will not do.  The IRS will never:

1. Call to demand immediate payment, nor will we call about taxes owed without first having mailed you a bill.
2. Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
3. Require you to use a specific payment method for your taxes, such as a prepaid debit card.
4. Ask for credit or debit card numbers over the phone.
5. Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying.

What should I do if a caller says they are with the I.R.S.?

Don’t provide any personal information and don’t engage with the caller (other than, perhaps, to ask their name so you can include it in a complaint). Then, hang up.

You can report the incident to the Treasury inspector general for tax administration by:

·         Calling 1-800-366-4484

·         Emailing  complaints@tigta.treasury.gov

·         Or filling out an online form

When you file the complaint, you will be asked to choose a five-digit PIN. If you are contacted about the incident, you should ask for the PIN, so you can be sure you are speaking to a legitimate agent.

You can also file a complaint with the Federal Trade Commission on its website using the FTC Complaint Assistant.  

What if I think I may actually owe taxes?

If you are concerned, call the IRS at 1.800.829.1040. The IRS workers can help you with a payment issue.

What else should I watch out for?

Fake phone calls and emails are just some of the "Dirty Dozen" of tax scams the IRS is alerting tax payers about this year.

Be on the lookout for preparers who try to steer you towards cheating on your taxes, by falsifying income to claim tax credits, hiding income with fake documents, using abusive tax shelters, or making excessive claims for tax credits.

Following the loss of over 80 million records in the Athem insurance breach in late January, you need to be extra cautious of tax-related scams this tax season. Millions of Social Security numbers were also taken in the breach. With just that number and your date of birth, criminals can file fake tax returns in your name and try to steal your tax refund.

Be smart and protect yourself.  

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