April 15th is coming up soon and the tax scammers have been in high gear. I even received a recorded call threatening me with arrest from some scammers this year! The most important thing to know is that the IRS never makes an initial contact by phone or email. If they do send you a letter, it will be easily verifiable. If anyone calls saying they are the IRS, just hang up. In fact, always be suspicious of any email or call asking for personal information. I’ll cover two scams that are currently being used in this article.
In the first type of scam, victims are told that they owe money to the IRS and it must be paid promptly through a pre-loaded debit card or wire transfer. If the victim refuses to cooperate, they are then threatened with arrest, deportation or suspension of a business or driver’s license. In many cases, the caller becomes hostile and insulting.
“This scam has hit taxpayers in nearly every state in the country. We want to educate taxpayers so they can help protect themselves. Rest assured, we do not and will not ask for credit card numbers over the phone, nor request a pre-paid debit card or wire transfer,” says IRS Acting Commissioner Danny Werfel. “If someone unexpectedly calls claiming to be from the IRS and threatens police arrest, deportation or license revocation if you don’t pay immediately, that is a sign that it really isn’t the IRS calling.”
Other characteristics of this scam include:
- Scammers use fake names and IRS badge numbers. They generally use common names and surnames to identify themselves.
- Scammers may be able to recite the last four digits of a victim’s Social Security Number.
- Scammers spoof the IRS toll-free number on caller ID to make it appear that it’s the IRS calling.
- Scammers sometimes send bogus IRS emails to some victims to support their bogus calls.
- Victims hear background noise of other calls being conducted to mimic a call site.
- After threatening victims with jail time or driver’s license revocation, scammers hang up and others soon call back pretending to be from the local police or DMV, and the caller ID supports their claim.
In the second type of scam, criminals actually deposit a “refund” in your bank account and then have a “collection agency” contact you to reclaim the funds. Once again, just hang up. The IRS recently published some warning signs that this scam may be occurring. They say you should be alert to possible tax-related identity theft if you are contacted by the IRS or your tax professional/provider about any of the following situations:
- More than one tax return was filed using your SSN.
- You owe additional tax, refund offset or have had collection actions taken against you for a year you did not file a tax return.
- IRS records indicate you received wages or other income from an employer for whom you did not work.
Unfortunately, scammers seem to be a part of our lives in recent years. If you need more information on these scams or just want to discuss some other aspect of your financial life, we’d be happy to talk with you in a no-charge, no-obligation initial meeting. Just visit our website or give us a call at 970.419.8212 to learn more.
This article is for informational purposes only. This website does not provide tax or investment advice, nor is it an offer or solicitation of any kind to buy or sell any investment products. Please consult your tax or investment advisor for specific advice.