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Tips to Avoid Identify Theft and IRS Scams This Tax Season

Tips to Avoid Identify Theft and IRS Scams This Tax Season

The year 2017 is drawing to a close. People are preparing for tax season, gathering papers and reading new rules so they won’t make mistakes on their tax return. Though everyone’s tax situation is different, there’s one thing we all have in common, and that’s the need to beware of IRS scammers trying to cheat us out of our money.

According to the Internal Revenue Service, an alarming number of people have been fooled by emails, phone calls and letters sent out by crooks pretending to be the federal agency. Scammers have stolen personal information and millions of dollars from people who didn’t know what to watch out for. The thousands who have been fooled have been fooled have even included tax professionals, in addition to individuals and businesses.

One of the most important things for you to know in order to protect yourself is that the IRS never contacts American taxpayers in any way other than through the mail. They are not going to use the telephone, email, text message, or social media. If anybody tries to get in touch with you about taxes or asks for personal or financial information through any of those communication methods, you should automatically be suspicious. Here are some other things you need to know:

Phone Calls Pretending to be the IRS

Imagine that your phone rings and the caller I.D. says it’s the IRS.

Pretty scary, right?

Especially if the person on the other end is saying that they’re an agent and reading off an IRS badge number that sounds really official. Even if you don’t pick up the phone, they’ll leave a message saying that you have to call back right away. This is a scam that is happening to a lot of taxpayers. The person who calls tells them that they owe money and they’re in big trouble. They say that they’re about to call the police, or if the victim is an immigrant they’ll say that they’re going to be deported. Sometimes they threaten to suspend their business license or driver’s license. After they frighten the person who they’ve called, the scammers tell them that they can fix the problem right away by paying through a wire transfer or gift card. Unfortunately, it’s a lie, and they’re stealing money.

Another phone scam that is being perpetrated on innocent victims tells them that they are owed a refund. The person pretending to be from the IRS asks for their Social Security Number and bank account number, pretending that they are going to deposit money into their account. When the innocent victim gives them this personal information, the scammer robs their bank account.

IRS tax scams have become very creative and crueler than ever. The scammers focus on people who are more vulnerable to threats or to being fooled. Sometimes they call old people, or people who are immigrants. Sometimes they call people who are deaf or who use video relay services (VRS) because people who use VRS don’t realize that interpreters don’t check for the validity of the caller. The scammer’s use of VRS makes it look as if the call is legitimate.

It’s easy to get fooled, but if you just remember the following things, you’ll be a lot safer.

  • The IRS never demands immediate payment. They also don’t call people. And they especially don’t tell you that there’s a certain way you have to pay.
  • If you really do owe the IRS money, they will generally let you know that by sending an invoice via the mail.
  • The IRS does not use the police department to enforce back payment issues. They do not use the police to arrest people.
  • The IRS never simply demands payment. They always send notices to ask why the payment was not what was expected, or why it wasn’t sent.
  • The IRS will never ask for payment over the phone using a debit or credit card.

Computer Tax Scams: Email, Phishing, and Malware

In addition to using the phone to trick people, scammers are also using the computer to send out false email messages known as “phishing” schemes. Many of the same rules that you need to remember about the phone are true of the computer as well. The IRS has sent out several notices letting people know that it does not ask for personal information or contact taxpayers about tax payments via email or via text. They are also warning that fake emails and text message are going out claiming to be from tax preparers or tax software companies asking for information so they can fill out your return. Do not click on any links in these types of texts or emails, as they can download malware onto your computer that can steal your personal information. The IRS does not send out text messages or emails.

If you get an email saying that the IRS needs information about an Annuity policy or your Life Insurance Policy, or one of these emails about a refund, a filing status, or asking for information that is personal, don’t click on any links in the emails or even reply to them. The same is true for emails asking you to very your PIN information or offering a transcript. They are trying to trick you into giving them money or personal information so they can steal your identity.

Though it seems like there’s a lot to remember, if you just remember that the IRS doesn’t contact people via phone, email or text message you’ll be way ahead of the game. If you get any kind of correspondence that you think may be real, but aren’t sure, contact a tax professional to help.

Gordon W. McNamee, CPA writes for TaxBuzz, a tax news and advice website. Reach him and his team at [email protected].

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Gordon W. McNamee

Gordon W. McNamee

Gordon W. McNamee is a Certified Public Accountant (CPA) based in Rancho Cucamonga, CA. Gordon W. McNamee can assist you with your tax return preparation, payroll, accounting and tax planning needs. <br /> <br /> 2021 is Gordon W. McNamee, CPAs 38th year in the profession. As as a former IRS agent (1984 through 1987), Gordon has been in public accounting since 1987. Gordon specializes in individual, corporate, HOA, trust, estate and payroll taxes. He also prepares financial statements and provides accounting & bookkeeping services. He enjoys making his clients feel at ease while providing a personalized professional service.

GORDON W. MCNAMEE, CPA
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