IRS: Keep an Eye Out for Tax Scams

The IRS is urging taxpayers to be on the lookout for evolving phishing emails and telephone scams.

This year, the agency has seen signs of two new variations of tax-related scams. One involves Social Security numbers related to tax issues, and another threatens people with a tax bill from a fictional government agency. Here are some details:

• The SSN hustle. The latest twist includes scammers claiming to be able to suspend or cancel the victim’s Social Security number. In this variation, the Social Security cancellation threat scam is similar to and often associated with the IRS impersonation scam. It is yet another attempt by con artists to frighten people into returning “robocall” voicemails. Scammers may mention overdue taxes in addition to threatening to cancel the person’s SSN.
• Fake tax agency. This scheme involves the mailing of a letter threatening an IRS lien or levy. The lien or levy is based on bogus delinquent taxes owed to a non-existent agency, “Bureau of Tax Enforcement.” There is no such agency. The lien notification scam also likely references the IRS to confuse potential victims into thinking the letter is from a legitimate organization.

Phone scams
The IRS does not leave pre-recorded, urgent, or threatening messages. In many variations of the phone scam, victims are told if they do not call back, a warrant will be issued for their arrest. Other verbal threats include law-enforcement agency intervention, deportation, or revocation of licenses.

Criminals can fake or “spoof” caller ID numbers to appear to be anywhere in the country, including from an IRS office. This prevents taxpayers from being able to verify the true call number. Fraudsters also have spoofed local sheriff’s offices, state departments of motor vehicles, federal agencies, and others to convince taxpayers the call is legitimate.

Email phishing scams
The IRS does not initiate contact with taxpayers by email to request personal or financial information. The IRS initiates most contacts through regular mail delivered by the United States Postal Service. However, there are special circumstances when the IRS will call or come to a home or business. These visits include times when a taxpayer has an overdue tax bill, a delinquent tax return or a delinquent employment tax payment, or the IRS needs to tour a business as part of a civil investigation (such as an audit or collection case) or during criminal investigation.

If a taxpayer receives an unsolicited email that appears to be from either the IRS or a program closely linked to the IRS that is fraudulent, report it by sending it to phishing@irs.gov. The Report Phishing and Online Scams page provides complete details.

Telltale signs of a scam
The IRS (and its authorized private collection agencies will never:

• Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card, or wire transfer. The IRS does not use these methods for tax payments. Generally, the IRS will first mail a bill to any taxpayer who owes taxes. All tax payments should only be made payable to the U.S. Treasury and checks should never be made payable to third parties.
• Threaten to immediately bring in local police or other law-enforcement groups to have the taxpayer arrested for not paying.
• Demand that taxes be paid without giving the taxpayer the opportunity to question or appeal the amount owed.
• Ask for credit or debit card numbers over the phone.

How to respond to a scam
For anyone who doesn’t owe taxes and has no reason to think they do:

• Do not give out any information. Hang up immediately.
• Contact the Treasury Inspector General for Tax Administration to report the call. Use their IRS Impersonation Scam Reporting web page.
  Report the caller ID and/or callback number to the IRS by sending it to phishing@irs.gov.
• Report it to the Federal Trade Commission. Use the FTC Complaint Assistant. Add “IRS Telephone Scam” in the notes.

For anyone who owes tax or thinks they do:

• View tax account information online at IRS.gov to see the actual amount owed. Taxpayers can then also review their payment options.
• Call the number on the billing notice, or
• Call the IRS at 800-829-1040. IRS workers can help.

The IRS does not use text messages or social media to discuss personal tax issues, such as those involving bills or refunds.

For more information, visit the Tax Scams and Consumer Alerts page on IRS.gov, or contact Weiss & Company LLP’s tax team.

Article reprinted from the IRS website.