It’s tax time. Unfortunately, this means it’s also tax scam time as well—since crimes related to tax tend to peak right about now.
“Taxpayers should be on the lookout for tax scams using the IRS name,” said IRS Commissioner John Koskinen. “These schemes jump every year at tax time. Scams can be sophisticated and take many different forms. We urge people to protect themselves and use caution when viewing e-mails, receiving telephone calls or getting advice on tax issues.”
This year, it looks like identity theft and phony IRS telephone calls are in the lead for the 2014 “dirty dozen” tax scams to watch out for, but they are not the only danger. Also remember, you may encounter any of these schemes at any time of the year, so be vigilant and be sure to report anything suspicious. IRS Criminal Investigation and the Department of Justice (DOJ) are always at work to shutdown scams and prosecute the criminals behind them.
We will tackle these schemes three at a time, since there is a lot of important information to know. Here are the first few dirty dozen tax scams for 2014:
Identity Theft
Topping the charts for 2014 is tax fraud through the use of identity theft. Anyone who gets a hold of your personal information (such as your name, Social Security number (SSN) or other identifying information) can do a number of harmful illegal things, including fraudulently filing a tax return and claiming your refund. The IRS is continuing to expand their work on this matter to protect and assist taxpayers.
For more information on identity theft, visit http://www.irs.gov/uac/Identity-Protection. If you are a victim, or believe you may be at risk of identity theft, contact the IRS Identity Protection Specialized Unit immediately at 800-908-4490 they can take action to secure your tax account.
Pervasive Telephone Scams
Elaborate telephone scams present a very present threat to taxpayers. From threats of license revocation to promises of a huge refund, the range of different stories scammers come up with are extensive. To back up their claims, they sometimes make follow up calls, posing as a DMV or police department representative (with a caller ID to match). In one variation, immigrants were targeted and threatened with arrest, deportation or suspension of a business or driver’s license if they refused to pay by wire transfer or pre-loaded debit card.
Characteristics of these scams can include:
- Scammers use fake names and IRS badge numbers. They generally use common names and surnames to identify themselves.
- Scammers may be able to recite the last four digits of a victim’s Social Security Number.
- Scammers “spoof” or imitate the IRS toll-free number on caller ID to make it appear that it’s the IRS calling.
- Scammers sometimes send bogus IRS emails to some victims to support their bogus calls.
- Victims hear background noise of other calls being conducted to mimic a call site.
What should you do if you receive such calls? Check with the IRS at 800-829-1040 to see if you owe taxes, and if so you can work out a payment from there. If you have no reason to think that you owe any taxes, call 800-366-4484 and report the incident to the Treasury Inspector General for Tax Administration. You should also contact the Federal Trade Commission at http://www.ftc.gov/ and use their “FTC Complaint Assistant”. Please add “IRS Telephone Scam” to the comments of your complaint.
Phishing
Phishing uses unsolicited email or a fake website to convince victims to provide personal and financial information. Like the phone scam, phishing can come with variations cover stories.
When watching out for phishing schemes, remember that the IRS does not request personal or financial information by initiating contact via email, text messages, or social media channels. Any unsolicited email that seems to be from the IRS (or other related agency) should be sent to [email protected]. See more information on phishing at: http://www.irs.gov/uac/Report-Phishing
Next blog we will continue looking at False Promises of “Free Money” from Inflated Refunds and other illegal schemes.