Tips for Recognizing Tax Scams

By Douglas McAlpine, Esq., CPA

The following notice from the IRS reports two new variations of scams currently being used to get your personal information along with tips to help taxpayers recognize these tax scams.  I know that the SSN scheme exists as my wife has been getting these robo calls for the last few weeks.  The calls are persistent as she got several in a row one morning last week while we were on vacation.  Each time she blocked the number but they kept coming in on different numbers.

Phone calls should always be treated as suspect.  The rule is that any contact of this type from the IRS that is legitimate will be done by mail.

Taxpayers should be on the lookout for new versions of these two scams:

With scam artists hard at work all year, taxpayers should be on the lookout for a surge of evolving phishing emails and telephone scams.

Taxpayers should watch for new versions of two tax-related scams. One involves Social Security numbers related to tax issues. The other threatens taxpayers with a tax bill from a fictional government agency. Here are some details about these scams to help taxpayers recognize them:

The SSN scheme

• The latest twist includes scammers claiming to be able to suspend or cancel the victim’s Social Security number. This scam is similar to and often associated with the IRS impersonation scam.
• It is yet another attempt by con artists to frighten taxpayers into returning robocall voicemails.
• Scammers may mention overdue taxes in addition to threatening to cancel the taxpayer’s SSN.

Fake tax agency

• This scheme involves a letter threatening an IRS lien or levy.
• The scammer mails the letter to the taxpayer.
• The lien or levy is based on bogus overdue taxes owed to a non-existent agency.
• The fake agency is called the “Bureau of Tax Enforcement.” There is no such agency.
• The lien notification scam also likely references the IRS to confuse potential victims into thinking the letter is from a legitimate agency.

Both of these schemes show classic signs of being scams. The IRS and its Security Summit partners – the state tax agencies and the tax industry – remind everyone to stay alert to scams that use the IRS or reference taxes. Being alert is especially important in late spring and early summer as tax bills and refunds arrive.

Here are some things taxpayers should remember to help them spot scams and avoid becoming a victim:

Phone scams

• The IRS does not leave pre-recorded, urgent or threatening messages.
• In many versions of phone scams, potential victims are told if they do not call back, a warrant will be issued for their arrest. Other verbal threats include law-enforcement agency intervention, deportation and revocation of licenses.
• Criminals can fake or “spoof” caller ID numbers to appear to be anywhere in the country. Scammers can even spoof an IRS office phone number, or the numbers of various local, state, federal or tribal government agencies.

Email phishing scams

• The IRS does not initiate contact with taxpayers by email to request personal or financial information.
• The IRS initiates most contacts through regular mail delivered by the United States Postal Service.
• There are special circumstances when the IRS will call or come to a home or business. These visits include times when a taxpayer has an overdue tax bill, a delinquent tax return, or a delinquent employment tax payment.
• If a taxpayer receives an unsolicited email that appears to be a scam, they should report it to the IRS. They can forward the email message to phishing@irs.gov. They should not open any attachments, click on any links, reply to the sender, or take any other actions that could put them at risk.

Telltale signs of a scam

Taxpayers should remember that the IRS generally first mails a bill to a taxpayer who owes taxes. The IRS and its authorized private collection agencies will never:

• Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. The IRS does not use these methods for tax payments.
• Ask for checks to third parties. The IRS has specific instructions on how to pay taxes. All tax payments should only be made payable to the U.S. Treasury.
• Threaten to immediately bring in local police or other law-enforcement groups to have the taxpayer arrested for not paying.
• Demand that taxes be paid without giving the taxpayer the opportunity to question or appeal the amount owed.

If a taxpayer receives a phone call, but doesn’t owe taxes and has no reason to think they do, they should:

• Hang up immediately.
• Contact the Treasury Inspector General for Tax Administration to report the call.
• Report the caller ID and callback number to the IRS by sending it to phishing@irs.gov.
• Report the call to the Federal Trade Commission.

If a taxpayer owes tax or thinks they do, they should:

• View tax account information online at IRS.gov to see the actual amount owed.
• Review their payment options.
• Call the number on any billing notice they receive or call the IRS at 800-829-1040.
• Remain on guard against scams and know that the IRS has a specific collection process.

If you have any questions regarding this information or any other tax concern, please contact us at 404-255-7400 or info@hoffmanestatelaw.com.