Beware of Tax Scams
Tax scams occur throughout the year, but they often ramp up during what is commonly thought of as tax season.
Learn to recognize the signs of tax scams
Fraudsters claiming to be Internal Revenue Service employees, complete with official-sounding titles and fake names and badge numbers, may call, text, or email you. They may use your name, address, and other personal information to sound legitimate. Usually they’ll change the caller ID so it looks like the call is coming from the IRS. Being aware of how the fraudsters operate is one way to protect yourself.
Red flags
Scammers frequently change the methods they use to try to take advantage of people, but, even as their specific scams change, some aspects of the scams remain the same. Keep these points in mind if someone unexpectedly calls you claiming to be from the Internal Revenue Service.
The IRS will never:
- Call about taxes owed without first having mailed you several bills
- Demand immediate payment over the phone
- Require you to use a specific payment method
- Threaten to immediately bring in law enforcement to arrest you for not paying
- Demand that you pay taxes without giving you the opportunity to question or appeal the amount you’re said to owe
- Call or email you to verify your identity by asking for personal and/or financial information
- Ask for credit or debit card numbers over the phone or email
- Leave a prerecorded, urgent, or threatening phone message
If the caller uses one or more of these tactics, it is a scam.
Common scam scenarios
Now that you are aware of some of the tactics scammer use, here are a couple of common scenarios. There are many variations on these basic scams, and, of course, many other scenarios as well.
Bogus tax bill
The caller will say you owe money to the IRS and demand that you pay immediately with a prepaid debit card, gift card, or wire transfer. They might threaten you with arrest, deportation, or suspension of your driver’s license. Often, the scammer will become aggressive, hostile, and insulting, and will try to bully you into paying.
Please verify your information
The caller may politely say, “We have your tax return, but I need to verify a few details before I can process it.” This scam tries to get you to give up sensitive information, such as your Social Security number and account or credit card numbers. Scammers may even offer you some partial information, such as the last four digits of your Social Security number, to trick you into trusting them.
What should you do?
If you’re contacted by someone claiming to be from the IRS who asks for money or personal information, hang up immediately. Do not tell them anything or answer any questions. If they left you a phone message, do not call them back. To learn more, visit the IRS website.