As end of year approaches, the IRS cautions taxpayers to be alert for new and common tax fraud attempts.
To help consumers protect themselves against these attempts at fraud, the IRS provides information and counter measures at their website: https://www.irs.gov/newsroom/tax-scams-consumer-alerts. The following alerts and tips are from the IRS web page.
Taxpayers should be on the lookout for new version of SSN scam: In the latest twist on a scam related to Social Security numbers, scammers claim to be able to suspend or cancel the victim’s SSN. It’s yet another attempt by con artists to frighten people into returning ‘robocall’ voicemails. See IRS Tax Tip 2019-149.
IRS Impersonation Telephone Scams: A sophisticated phone scam targeting taxpayers, including recent immigrants, has been making the rounds throughout the country. Callers claim to be IRS employees, using fake names and bogus IRS identification badge numbers. They may know a lot about their targets, and they usually alter the caller ID to make it look like the IRS is calling.
Victims are told they owe money to the IRS and it must be paid promptly through a gift card or wire transfer. Victims may be threatened 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.
Limited English Proficiency victims are often approached in their native language, threatened with deportation, police arrest and license revocation, among other things. IRS urges all taxpayers caution before paying unexpected tax bills. Please see: IRS Alerts Taxpayers with Limited English Proficiency of Ongoing Phone Scams.
Note that the IRS does not:
- 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 you a bill if you owe any taxes.
- Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying.
- 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.
Fake Payments with Repayment Demands: Criminals are always finding new ways to trick taxpayer’s into believing them. This scam works when the fraudster files a bogus tax return in a victim’s name and has the refund sent to the victim’s bank account. Posing as an IRS employee, the scammer then calls the taxpayer, telling them the refund was a mistake and threatening penalties and interest on the refund amount. The IRS warns about unexpected refunds and phone calls demanding repayment, telling victims to immediately notify their bank and the IRS about the events.
EIP or Refund Theft. Tax refund fraud and theft is an ongoing threat despite FBI efforts against it. Criminals set their sights on stealing Economic Impact Payments from the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The FBI warns that identity theft allows hackers to file false tax returns and give fake information allowing funds to be diverted to their bank accounts and other addresses.
Senior Fraud. Tax scams targeting American seniors happen more often than other segments of society. Those who care for seniors need to be alert about the potential tax scams and other fraud targeting this group. The IRS warns about this abuse and is joined by the FBI, Department of Justice, Consumer Financial Protection Bureau, and the Federal Trade Commission with its warnings.
