IRS Phone Scam: How to Protect Yourself From IRS Telephone Fraud
26 Oct 2015
26 Oct 2015
If you read the news we're sure that you've seen the stories regarding the IRS phone scam and the issues that the IRS has experienced with identity theft recently. You may have even gotten a call from someone posing as an IRS agent telling you that you owed on your taxes. Across the country Americans are receiving calls like this on a daily basis.
You yourself might not stress tax day when it comes every year, but for many other Americans it's a real cause of anxiety. Quicken found that 51% of Americans feel some level of tax-related anxiety. A call from someone posing to be from the IRS and demanding that you pay up, or face consequences, could shake you. Scammers have realized that there are billions of dollars at their access if they just reach the right people and can be convincing enough.
These scammers become more convincing with practice and have established networks of bank accounts and unknowing helpers throughout the U.S. making it easier for them to steal your money.
Below are a few of the most common variations of IRS-related scams:
One of the most recent tax scams includes impersonation of agents from the Bureau of Tax Enforcement. Scammers copy the IRS protocol of sending a letter before making a phone call. The letter threatens to place a lien on the taxpayer’s property due to delinquent taxes. The taxpayer believes the claim is real since most people know the IRS can and does place liens on properties. The scammer follows up with a phone call demanding immediate payment of the bill. Taxpayers often give the requested information or make payments out of fear of losing their homes or property.
However, the Bureau of Tax Enforcement does not exist. It is a fake agency designed to scam people out of money and personal information. If you get a letter from the Bureau of Tax Enforcement shred it and ignore calls from them.
Unlike the Bureau of Tax Enforcement, the Taxpayer Advocate Service (TAS) is a real agency under the IRS. Taxpayers, tax professionals and businesses manage tax issues directly with the IRS or its subsidiary, the TAS. The agency refers to itself as “Your voice within the IRS” and offers its services for free. You can contact the Taxpayer Advocate Service for help with tax debt, overpayment, or other financial problems. TAS offers a Toolkit to help taxpayers with filing taxes and to understand their rights. The TAS operates at least one office in each state.
Scammers have been calling people impersonating the Taxpayer Advocate Service. By pretending to be the TAS and offering help, scammers are easily able to convince their victims to give over sensitive personal and financial information Like the IRS, TAS will never make contact by phone or email.
The IRS states that nearly 54% of taxpayers used a paid tax preparer to file their returns in 2017. Sadly, phony tax preparers steal information, too. These unethical tax preparers use personal information for identity theft and filing false returns. The IRS refers to the phony tax preparers as “ghost” preparers. Real tax professionals have credentials and proper identification. Fly-by-night agencies supply none of that information and evade answering any questions about their training or experience. Taxpayers should avoid being scammed by “ghost” preparers by noticing these red flags:
Scammers target tax professionals with the goal of stealing client information and filing phony returns. Some signs of a scam include:
Tax season gives scammers a golden opportunity to reel in new victims. The IRS says the best way to avoid phone scams and identity theft is to file your taxes early. Don’t wait until April. Instead, file as soon as you receive tax forms from your employer and other sources.
The IRS suggests using electronic filing to get your tax refund as soon as possible. Most government agencies, including the Social Security Administration and Veterans Affairs, use direct deposit for payments. The IRS states direct deposit is "simple, safe, and secure."
Online services, like TurboTax, make filing electronically easy. Taxpayers using accountants should ensure that the accountant or company is legitimate and has a good track record. Scammers target tax preparers as well, stealing social security numbers and financial information. They also use the professionals’ electronic filing software to file phony tax returns.
It seems difficult, if not impossible, to spot an IRS scam. However, the IRS and FTC offer sure-fire ways to spot phone scams quickly – before any information changes hands.
While con artists continue to think up new tactics to trick victims, there are sure-fire ways to spot a phony IRS call quickly. If a caller tries one of these five measures - contrary to how the real IRS operates - you'll know it's a scam:
To protect yourself, the FTC and other watchdogs recommend:
For more information we've created this guide with five easy steps to identify the IRS phone scam.
If you have fallen behind on taxes, the IRS offers many different options for paying back taxes. If you think you might owe taxes you can call the IRS at 1-800-829-1040 to learn if you do owe money and find out more about their different payment options.
If you have been contacted by an IRS phone scammer you should report it to the the TIGTA at 1-800-366-4484 or at www.tigta.gov, as well as the Federal Trade Commission's FTC Complaint Assistant. In addition, you can help warn others by leaving your feedback on scam phone numbers in our reverse phone number lookup app for iPhone. If you don't have an iPhone, you can still run reverse number lookups on our website and leave your feedback to help others avoid scams.
CallerSmart Pro is built on a simple premise: High-quality leads result in more sales and less frus...
You asked for our phone book to expand, and we listened to you! Our award-winning and highly-rated iPhone reverse phone lookup app is now available in ...
People rely on social media to keep in touch with family and friends, meet people of like minds, start new romantic relationships, and shop. Social media is a huge p...