Tax Scams

Watch Out for Tax Scams

Did you know that thousands of people have lost millions of dollars and their personal information to tax scams? Scammers will use the mail, telephone, or email to scam individuals and businesses. 

According to the IRS, they don’t initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information.

 

Phone scam;

There is a sophisticated phone scam targeting taxpayers where the scammers are using an altered caller ID to make it appear like the IRS is calling. The caller claims to be an IRS employee, using a fake name and credentials. The scammers may even know a lot about their targets. 

Victims are told they owe the IRS money and it must be paid immediately with a prepaid gift card or wire transfer. The fake IRS agent may threaten the victim with arrest, deportation or suspension of a business or driver’s license. In many cases, the caller becomes hostile and insulting. Victims may be told they have a refund due to try to trick them into sharing private information. If the phone isn’t answered, the scammers often leave an “urgent” callback request.

Note that the IRS doesn’t:

  • Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail a bill when taxes are owed.
  • Threaten to bring in local police or other law-enforcement groups to have you arrested.
  • Demand payment without giving you the opportunity to question or appeal the amount they say you owe.
  • Ask for credit or debit card numbers over the phone.

 

Email scam;

The IRS has issued several alerts about the fraudulent use of the IRS name or logo by fraudsters trying to gain access to consumers’ financial information to steal their identity and assets. 

Scam emails are designed to trick consumers into thinking these are official communications from the IRS or others in the tax industry, including tax software companies. These phishing schemes may seek information related to refunds, filing status, confirming personal information, ordering transcripts and verifying PIN information.

Be alert to bogus emails that appear to come from your tax professional, requesting information for an IRS form.

For more information on IRS tax scams and consumer alerts visit the IRS website directly.