Tax Scam Losses Exceed $20 Million

 

The IRS is warning taxpayers to be vigilant and on high alert in the wake of evolving tax scams.

A recent IRS press release notes that the Treasury Inspector General for Tax Administration (TIGTA) has received reports of roughly 600,000 contacts just since October of 2013. Indeed, TIGTA is aware of thousands of victims with collective losses exceeding $20 million.

The IRS notes that scammers typically pose as IRS agents and traditionally target those seemingly vulnerable, such as senior citizens, immigrants, and those whose first language is not English. The tactics involve posing as IRS agents over the telephone, in emails, or by letter with the goal of tricking taxpayers to provide financial information or to submit false tax payments. However, the IRS notes that scammers are now targeting “virtually anyone.”

The IRS reports that newer tactics include altering telephone caller ID to make it appear as though an official government agency is calling, such as the Department of Motor Vehicles. Scammers may even learn about victims in advance by using online resources. Other new scams include requesting the victim to send a “receipt” to an actual IRS address. Despite the various tricks, the common theme is fear. The IRS notes that “[s]cammers try to scare people into reacting immediately without taking a moment to think through what is actually happening.”

The IRS release emphasizes that it will never angrily demand payment over the phone or threaten arrest by local police. Also, it will not demand payment without providing an opportunity to question or appeal the alleged amount owed. Importantly, the IRS will not ask for credit or debit card numbers over the phone, nor will it ask for a specific payment method (e.g., prepaid debit card).

If you think you’ve been a target of an IRS impersonation scam, the IRS recommends the following:

Call the IRS at 1-800-829-1040. 

Report the incident to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484. 

Contact the Federal Trade Commission and use its “FTC Complaint Assistant” at FTC.gov (and add “IRS Telephone Scam” to the comments of your complaint).

Read the full IRS release here.