Tax & Accounting News

Avoid being a victim to the new wave in IRS phone scams

by
Lee Reams II
on
11/10/2014
Avoid being a victim to the new wave in IRS phone scams

Article Highlights:

  • Scammers who pose as IRS agents are calling people nationwide. 
  • The IRS never initiates contact by phone or e-mail. 
  • The IRS will not ask for a credit card number or account PINs over the phone. 
  • The IRS will never demand an immediate payment. 
  • Don't get fooled by these aggressive scammers!

The latest IRS phone scam has claimed scores of victims over the last few months. Reports of thousands of fraud victims continue to flood in. The IRS has even published a tax scam overview video to help taxpayers protect themselves from the crooks.

The fraudsters are getting pretty sophisticated and are trying to steal your identity and your hard-earned cash. The plot for the scam is the threat that you owe money to the IRS. It is this inherent fear that makes some taxpayers fall prey to the fraud.

How the scam works

The scammer places a phone call to the unsuspecting taxpayer. He represents himself as an agent of the IRS who is trying to collect an unpaid tax debt. The first red flag is that the IRS always sends its first audit correspondence via US mail. The caller will be threatening and try to bully the victim into making an immediate payment to fulfill a tax debt. The IRS does not use such harsh techniques when trying to collect a legitimate debt. You should hang up immediately.

The IRS and the Treasury Inspector General for Tax Administration (TIGTA) have reported over 90,000 complaints year to date. Taxpayers should remember the first contact with the IRS will not be made through an unscheduled phone call but via official correspondence sent through the US mail.

It is important for taxpayers to know that the IRS:

  • Will not ask for a credit card, debit card, or prepaid card information over the phone. 
  • Will never specify the type of payment for paying off a tax debt. 
  • Will not demand immediate payment over the phone. 
  • Will not start enforcement action immediately after a phone call.

Standard procedure involves a taxpayer receiving prior written notification of IRS enforcement action involving IRS tax liens or levies.

Potential phone scam victims are told they owe money that must be paid immediately to the IRS agent; or they are told they are entitled to a big refund. If unsuccessful with the first approach, the scammers may call back trying a new technique.

Other characteristics of this scam include:

  • The use of fake names or IRS badge numbers. They generally use common names and surnames to identify themselves. 
  • Many scammers may have access to the last 4 digits of your social security number. Do not provide the rest of the numbers or your birth date in order to protect yourself from further harm through identify theft. 
  • The phone scammer may spoof the IRS toll-free number on caller ID to make it appear it is an actual call from the IRS. 
  • The phone scammer may also use email in a ploy to support his or her pitch. 
  • Victims have reported hearing background noises consistent with a call center. 
  • The scammer may use cohorts to pose as law enforcement or DMV officials, with the caller ID supporting their claim.

Do not get fooled. It is a fraudulent scheme. If you get a call from a stranger pretending to be from the IRS, DO NOT give the caller any information or credit card information. You should cease the call immediately.

The IRS will not initiate contact with taxpayers by e-mail to request personal or financial information. This covers all types of electronic communication, such as text messages and social media channels. The IRS will never ask for PINs, passwords, or similar confidential information for credit card, bank, or other financial accounts. If you receive such a request or communication, DO NOT open any attachments or click on any links contained in the message. If you wish to help the government combat these scams, forward the e-mail to [email protected].

This is not the only scam currently being exploited by criminals; you should be aware that there are other unrelated scams (such as a lottery sweepstakes) and solicitations (such as tax debt relief) that fraudulently claim to be from the IRS. When in doubt, contact your tax professional directly. If you know you owe taxes or you think you might owe taxes, call the IRS at 1.800.829.1040. The IRS agents at this line can help you with a payment issue, if an issue really exists.

Taxbuzz doesn't want you to become a victim. Please share this article with family and friends, especially those who are more susceptible to this IRS phone scam, like the elderly.

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Lee Reams II

Lee Reams II

CEO

I am a tax and business news junkie who has spent the last 20 years developing and executing "best in class" word-of-mouth marketing campaigns for tax and accounting professionals. With TaxBuzz and CountingWorks we have taken that same commitment to quality content directly to the consumer. Keeping you up-to-date with the latest tax law changes, business growth tips and planning strategies to help you reach your best financial outcome.

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