IRS Scams: Protect Yourself During Tax Season

Tax filing season is here, and unfortunately, so are the scammers. They’re constantly evolving their tactics to take advantage of unsuspecting taxpayers, seeking both money and sensitive personal information. The International Association of Better Business Bureaus (BBB) warns that these IRS scams often begin with a phone call and generally fall into two main categories.

Common IRS Scam Tactics

The first tactic involves a scammer posing as an IRS agent, claiming you owe back taxes. They’ll attempt to pressure you into immediate payment using prepaid debit cards or wire transfers, often threatening arrest and hefty fines if you don’t comply. The second common scam involves the scammer claiming to issue tax refunds and requesting personal information to facilitate the payment. This information can then be used for identity theft, particularly targeting college students with false claims about unpaid “federal student taxes.”

The Better Business Bureau urges taxpayers to exercise extreme caution when contacted by anyone claiming to represent the IRS. Scammers are becoming increasingly sophisticated in their attempts to appear legitimate.

How Scammers Try to Appear Legitimate

• Fake Credentials: They may provide a fabricated badge number or name.
• Spoofed Caller ID: The caller ID might display Washington, D.C., as the origin of the call.
• Official-Sounding Robocalls: Scammers use serious-sounding “robocalls” designed to mimic official IRS communications.
• Deceptive Emails: Follow-up emails often feature IRS logos, colors, and language to create a sense of authenticity.

Scammers often try to rush you into taking action before you have time to ask questions or carefully consider the information presented. They may also demand payment through untraceable methods like wire transfers or prepaid debit cards.

What the Real IRS Will *Never* Do

The actual IRS will never initiate contact with taxpayers by phone, email, text message, or social media. They will also never demand immediate payment, require a specific payment method, or ask for your credit or debit card number over the phone. The IRS allows taxpayers the right to question any amount of back taxes owed and to appeal decisions.

Importantly, the IRS always initiates contact via mail. If you receive an unexpected phone call or email, you can be better prepared to identify a scam. After sending a mailed notice regarding outstanding debts, the IRS may follow up with a phone call.

Beware of Refund Scams

The IRS has also warned about a mailing scam involving fake refund letters. Taxpayers receive a cardboard envelope containing a letter that appears to be from the IRS, claiming an unclaimed refund and requesting personal and financial information. Learn more about this scam on the official IRS website.

Protect Yourself

If you’re unsure whether a communication is legitimate, contact the IRS directly to report the claim and verify its authenticity. Filing your taxes as early as possible can also help protect you from identity theft, as scammers may attempt to file fraudulent returns using your information.

For more information and resources, visit the official IRS website: https://www.irs.gov/