There seems to be a never-ending progression of problems facing the Internal Revenue Service. One of the greatest challenges facing that Agency is the growing number of invasive criminals trying to mislead taxpayers into sending money to them. On August 6, 2015, the Internal Revenue Service once again warned taxpayers about these schemes through the release of IR-2015.
Pursuant to the Internal Revenue Service, “these schemes – which can occur over the phone, in e-mails or through letters with authentic looking letterhead – try to trick taxpayers into providing personal financial information or scare people into making a false tax payment that ends up with the criminal.”
The Treasury Inspect General for Tax Administration (TIGTA) has received reports of approximately 600,000 contacts from Internal Revenue Service imposters since October 2013. TIGTA is aware of more than 4,000 victims who have collectively reported over $20 million in financial losses as a result of these schemes.
The scammers use fear and a variety of deceitful tactics to trick taxpayers. In the early stages, the scammers targeted elderly, newly arrived immigrants, and those whose first language is not English. However, they are now targeting virtually anyone. The scammers alter what appears on the taxpayer’s caller ID to make it appear as though they are with the IRS or another agency; use fake names, titles, and badge numbers; and use online resources to obtain the taxpayer’s name, address, and other details about them to increase their credibility. Some will provide victims directions to the nearest bank or business where payment, such as a debit card, can be obtained.
Taxpayers are urged to remember the Internal Revenue Service website is www.irs.gov and to not be misled by sites claiming to be the Internal Revenue Service (ending in .com, .net, .org, or other designations.) The Agency suggests, and Grossman Yanak & Ford LLP concurs, that taxpayers should never provide personal information of any type, financial or otherwise, to suspicious websites or strangers calling without prior notification.
The Internal Revenue Service notes also that there are a number of activities undertaken by the scammers that would never be undertaken by legitimate officers of the Agency, including:
- Angrily demand immediate payment over the phone; nor will the agency call about taxes owed without first having mailed you a bill.
- Threaten to 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.
- Require you to use a specific payment method for your taxes, such as a prepaid debit card.
- Ask for credit or debit card numbers over the phone.
If a taxpayer should become suspicious of a contact made and feel they he/she may be a target of an Internal Revenue Service impersonation scheme, the Agency recommends the following actions:
- If you actually owe taxes, call the IRS at 1-800-829-1040. IRS workers can help you with a payment issue.
- If you know you do not owe taxes or do not immediately believe that you do, you can report the incident to the TIGTA at 1-800-366-4484.
- If you’ve been targeted by any scam, be sure to contact the Federal Trade Commission and use their FTC Compliant Assistant at FTC.gov. Please add “IRS Telephone Scam” to the comments of your complaint.
In addition to being aware of the scam tactics, we would advise that those caring for taxpayers who may be more vulnerable – such as those not fluent in English, elderly taxpayers, or those that may be suffering from a medical or psychological affliction – be attuned to all potential tax threats and report any issues using the steps noted above.
For those seeking more information on theses matters, please feel free to contact Bob Grossman at 412.338.9300.
