Even as the Internal Revenue Service (IRS) and U.S. Treasury Inspector General for Tax Administration (TIGTA) have continued to warn taxpayers about IRS impersonation scams, fraudsters are still making the rounds.
Law enforcement officials from Rhode Island to Kentucky to Hawaii are warning taxpayers that IRS impersonation scams are on the rise – and those scammers are becoming more aggressive.
This week, Rhode Island Attorney General Peter F. Kilmartin posted a press release advising taxpayers that scammers have added a twist: creating a network of calls and numbers to trick taxpayers into believing the calls are legitimate. Instead of simply calling and hanging up, the calls now involve a voicemail requesting a callback. Attorney General Kilmartin said, about the scam, “Just when we are on to the scam and alert consumers what to look for, these outfits change up the game and, as a result, people are more likely to fall for it.”
In Canton, Michigan, calls to taxpayers are spoofing the Canton police: in other words, the Canton Police Department number is showing on the caller ID when the scammers call. When a taxpayer answers the phone, they are told the police department is calling to collect money owed to the IRS. Similar calls are being fielded in Detroit, Michigan.
In Kentucky, the Better Business Bureau has reported an uptick in complaints about callers who claim to be IRS officials and who threaten taxpayers with legal action if they don’t send payment via prepaid debit cards, money orders or bank wire transfers. According to the Jack Frank, President and CEO of the BBB serving Central and Eastern Kentucky, “People receiving the call report a recorded message stating that a lawsuit will be filed unless the taxpayer returns the call immediately to the IRS to make good on back taxes owed. The calls are really from con artists pretending to be with the IRS to try and trick people into paying money to them.” So far, thankfully, Frank says no caller has reported falling for the scam.
The scammers are growing even bolder in Hawaii. Taxpayers have reported receiving calls from those purporting to be from the IRS who insist that taxpayers go to the bank and withdraw a large sum of money. In one instance, a taxpayer reported that the caller said he would then go to the house to collect the money.
Similar stories are being repeated across the country. In March, the IRS reported that it was receiving reports of scammers calling and claiming that taxpayer information needs to be verified over the phone. In the scheme, the scammer calls you and claims to be with the IRS. They then say they need to verify some information to process your return. Those details generally involve confirming your Social Security number or other personal financial information, such as bank numbers or credit cards.
Why the uptick in calls? With tax season just over, scammers may be hoping to capitalize on fears of taxpayers who worry they made a mistake or those that are waiting on tax refunds.
The scammers are finding some success. Thousands of victims have collectively paid tens of millions of dollars to scammers posing as IRS officials. Phone scams remain on the IRS’ “Dirty Dozen” List of Tax Schemes and Scams for 2016.
The solution? Hang up. Don’t engage the caller. And don’t call a number on voicemail in response to a message claiming that you might owe back taxes.
Remember that scams are not restricted to phone calls. Email scams are making the rounds, too. Be careful.
The IRS says that any one of these six things is a tell-tale sign of a scam:
- Call to demand immediate payment over the phone, nor will the agency call about taxes owed without first having mailed you several bills.
- Call or email you to verify your identity by asking for personal and financial information.
- Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
- Require you to use a specific payment method for your taxes, such as a prepaid debit card.
- Ask for credit or debit card numbers over the phone or email.
- Threaten to immediately bring in local police or other law-enforcement groups to have you arrested for not paying.
The IRS never initiates contact with taxpayers via email. If you get an email asking you to visit a website or answer personal questions, do not reply and do not click on any links in the email.
If you receive a phone call from someone claiming to be with the IRS who engages in any of those six warning signs and you do not owe taxes, or have no reason to think that you do, do not give out any information. Hang up immediately.
If you receive a phone call from someone claiming to be with the IRS and you owe tax or think you may owe tax, do not give out any information. Call the IRS back at 1.800.829.1040 to find out more information. If you’re looking for information about the status of your refund, use the IRS “Where’s My Refund?” tool.
You can also contact TIGTA to report scam calls by calling 1.800.366.4484 or by using their “IRS Impersonation Scam Reporting” form on the website. You may also want to report the scam to the Federal Trade Commission by using the “FTC Complaint Assistant” to report persons pretending to be from the government; please add “IRS Telephone Scam” in the notes.
Don’t fall for the tricks. Keep your personal information safe this tax season by remaining alert. For tips on protecting yourself from identity theft-related tax fraud, click here.
