Beware of Tax Scams

Every tax season we see more and more schemes that target innocent taxpayers by email, by phone and online. Watch out for these deceptive scams so you don't become a victim.

Some of the most common IRS impersonation scams include:

Demanding fake tax payments: Sometimes these are automated calls where scammers leave urgent requests telling people to call back to settle their “tax bill.” These fake calls usually claim to be the last warning before legal action is taken. You may also receive live calls from IRS impersonators. They might demand payments on prepaid debit cards, iTunes and other gift cards or wire transfer. Any request to settle a tax bill using any of these payment methods is a clear indication of a scam.

Calling students and parents and demanding payment for a fake tax: Ever heard of the "Federal Student Tax"? No? That's because it doesn't exist. Telephone scammers are targeting students and parents demanding payments for fictitious taxes, such as the “Federal Student Tax.” If the person does not comply, the scammer gets aggressive and threatens to have the student arrested.

A fake IRS bill for tax year 2015 related to the Affordable Care Act: The fraudulent notice includes a payment request that taxpayers mail a check made out to “I.R.S.” to the “Austin Processing Center” at a PO Box address.

“Verifying” tax return information over the phone: Scam artists call saying they have your tax return, and they just need to verify a few details to process your return. The scammer tries to get you to give up personal information such as your social security number.

Pretending to be from the tax prep industry: These emails are designed to trick people into thinking they are official messages from the IRS or others in the tax industry, including tax software companies. The phishing schemes can ask taxpayers about a wide range of topics. E-mails or text messages might seek information related to refunds, filing status, confirming personal information, ordering transcripts or verifying PIN information.

If you receive an unexpected call, unsolicited email, letter or text message from someone claiming to be from the IRS, here are some of the tell-tale signs to help protect yourself.

The IRS Will Never:

• Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer or initiate contact by e-mail or text message. Generally, the IRS will first mail you a bill if you owe any taxes.
• Threaten to immediately 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.
• Ask for credit or debit card numbers over the phone.

If you get a suspicious phone call from someone claiming to be from the IRS and asking for money, here’s what you should do:

• Do not give out any real information.
• Search the web for telephone numbers scammers leave in your voicemail asking you to call back. Some of the phone numbers may be published online and linked to criminal activity.
• Contact TIGTA to report the call. Use their “IRS Impersonation Scam Reporting” web page or call 800-366-4484.
• Report it to the Federal Trade Commission. Use the “FTC Complaint Assistant” on their website. Add “IRS Telephone Scam” in the notes.
• If you think you might actually owe taxes, call the IRS directly to find out.

If you receive an unsolicited email that appears to be from the IRS report it by sending it to phishing@irs.gov.