No one ever wants to be the victim of a tax scam, resulting in the loss of money and financial reputation. Earlier this year, we posted about 12 Tax Scams the IRS was aware of before tax season. As your top resource for tax-related news, we want to make consumers aware of the latest tactic from scammers: using caller ID.
These new scammers function by showing up on a caller id system as someone who looks credible and like they work for the IRS or another agency, like the Department of Motor Vehicles. They seem legitimate, because they’ve done their homework – they use online resources to get your name, address, and other details about your life. They, they use fake names, titles, and badge numbers to gain your trust. Some even go so far as to provide directions to the nearest bank or business where the victim can obtain “payment”.
Who is Affected?
In the beginning, these scammers were targeting individuals that seemed most vulnerable, including older Americans, new immigrants, and those who speak English as a second language. Now, these scammers are growing bolder, and targeting everyone. Using fear tactics, including threatening police arrest, deportation, or license revocation, these scammers convince people they are legitimate.
5 Things The IRS Will Never Do, But Scammers Will:
- Angrily demand immediate payment over the phone
- Threaten to bring in local law-enforcement groups
- Demand you pay taxes without giving you the opportunity to appeal
- Require you to use a specific payment method
- Ask for credit or debit card numbers over the phone
If you feel you have been a victim of an IRS scam, report the incident to the Treasury Inspector General for Tax Administration at 1-800-366-4484.
These free resources should not be taken as tax or legal advice. Content provided is intended as general information. Tax regulations and laws change and the impact of laws can vary. Consult a tax advisor, CPA or lawyer for guidance on your specific situation.