Recently, I have noted an increase in the instances when I am contacted by a client asking if a phone call or letter they received “from the IRS” is legitimate or not. You likely have seen news headlines regarding the increase in these types of scams being perpetrated by the dregs of our society. I wanted to address this unfortunate issue in this month’s blog to ensure that my clients are aware of the scam and that they don’t fall prey to these tactics.
The typical scam routine is that you receive a phone call from someone who claims to be from the IRS and that you owe for prior years’ liability. You are then told that the amount due must be paid promptly, usually through wire transfer or other electronic conveyance. You are told that if you don’t cooperate with the payment of the amount due today, that they will arrange for the police to visit your home and arrest you. In many cases, the caller becomes hostile and insulting.
The IRS has repeatedly emphasized that they never ask for credit or debit card numbers over the phone nor do they request a pre-paid debit card or wire transfer payment. The standard first contact from the IRS regarding a balance due is by mail, not telephone.
These scammers typically use fake names and IRS badge numbers, can often recite the last four digits of your social security number, and mask their caller ID to match the standard IRS toll-free number. They also often send bogus emails to back up their phone calls. Potential victims often hear background noise or other calls being conducted to mimic an IRS call center. The caller will often eventually hang up and then others call back impersonating a local police officer, once again with caller ID that would substantiate their identity.
The IRS recommends that if you receive a call such as this that you not provide any information and then contact the IRS at 1-800-829-1040 to inquire about any legitimate outstanding balance due. They also recommend that you report the incident to the Treasury Inspector General for Tax Administration at 1-800-366-4484. Lastly, they recommend that you contact the Federal Trade Commission and use their “FTC Complaint Assistant” at www.ftc.gov and add “IRS Telephone Scam” to the comments of your complaint.
Lastly, the IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes text messages and social media channels. The IRS also does not ask for PINs, passwords or similar confidential access information for credit card, bank or other financial accounts. Recipients should not open any attachments or click on any links contained in the message. Instead, you can forward the email to phishing@irs.gov.
Hopefully, this information will be useful to have. If you have any concerns or questions about contact you have received, please let us know and we can help confirm whether the contact was legitimate or not.