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Tax Scams

The following information is from the IRS website: https://www.irs.gov/uac/tax-scams-consumer-alerts

 

Tax Scams / Consumer Alerts

                                                                                                                        
In recent years, thousands of people have lost millions of dollars and their personal information to tax scams and fake IRS communication. Scammers use the regular mail, telephone, fax or email to set up their victims.

 

REMEMBER: The IRS doesn't initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. In addition, IRS does not threaten taxpayers with lawsuits, imprisonment or other enforcement action. Recognizing these telltale signs of a phishing or tax scam could save you from becoming a victim.

 

Last-Minute Email Scams

The IRS, state tax agencies and the tax industry urges both tax professionals and taxpayers to be on guard against suspicious activity, especially email scams requesting last-minute deposit changes for refunds or account updates.

Recommendations for taxpayers:

  • Learn to recognize phishing emails, calls or texts that pose as banks, credit card companies, tax software providers or even the IRS. They generally urge you to give up sensitive data such as passwords, Social Security numbers and bank or credit card accounts.
  • If you receive suspicious emails forward them to phishing@irs.gov. Remember: never open an attachment or link from an unknown or suspicious source.

Scams Targeting Taxpayers

IRS-Impersonation Telephone Scams

An aggressive and sophisticated phone scam targeting taxpayers, including recent immigrants, has been making the rounds throughout the country. Callers claim to be employees of the IRS, 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 pre-loaded debit 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. Or, 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.

ome con artists have used video relay services (VRS) to try to scam deaf and hard of hearing individuals. Taxpayers are urged not trust calls just because they are made through VRS, as interpreters don’t screen calls for validity. For more details see the IRS YouTube video: Tax Scams via Video Relay Service .   

Note that the IRS will never:

  • 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 immediately bring in local police or other law-enforcement groups to have you arrested for not paying.
  • Demand that you pay taxes 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.

Remember: Scammers Change Tactics -- Aggressive and threatening phone calls by criminals impersonating IRS agents remain a major threat to taxpayers, but variations of the IRS impersonation scam continue year-round and they tend to peak when scammers find prime opportunities to strike.


Surge in Email, Phishing and Malware Schemes

When identity theft takes place over the web (email), it is called phishing. The IRS saw an approximate 400 percent surge in phishing and malware incidents in the 2016 tax season.

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

Scam emails are designed to trick taxpayers 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.

Variations of these scams can be seen via text messages. The IRS is aware of email phishing scams that include links to bogus web sites intended to mirror the official IRS web site. These emails contain the direction “you are to update your IRS e-file immediately.” The emails mention USA.gov and IRSgov (without a dot between "IRS" and "gov"), though not IRS.gov (with a dot). These emails are not from the IRS.

The sites may ask for information used to file false tax returns or they may carry malware, which can infect computers and allow criminals to access your files or track your keystrokes to gain information.

Unsolicited email claiming to be from the IRS, or from a related component such as EFTPS, should be reported to the IRS at phishing@irs.gov.

For more information, visit the IRS's Report Phishing web page.


Tax Refund Scam Artists Posing as Taxpayer Advocacy Panel


Some taxpayers may are receive emails that appear to be from the Taxpayer Advocacy Panel (TAP) about a tax refund. These emails are a phishing scam, where unsolicited emails try to trick victims into providing personal and financial information. Do not respond or click any link. If you receive this scam, please forward it to phishing@irs.gov and note that it seems to be a scam email phishing for your information.;

TAP is a volunteer board that advises the IRS on systemic issues affecting taxpayers. It never requests, and does not have access to, any taxpayer’s personal and financial information.