Tax season starts next month. Criminals deceive many people. They start by stealing information, and ultimately money from them. Identity theft and refund fraud scams are common. Increasingly, there are schemes to swindle taxpayers by phone, emails, and other ways online. Everyone needs to be aware of the warning signs to avoid being victimized. Here is a partial listing of scams used:
Fake Tax Payment Requests
The Internal Revenue Service (IRS) uses robocalls and so do the impersonators. They leave messages requiring immediate payment of a tax bill, lying to the consumer and insisting legal action will be attempted if they are not paid immediately. Criminals will call a taxpayer demanding payment on prepaid cards, gift cards, or a wire transfer. None of these payment methods are used by the IRS. Being asked to settle your bill using one of the above-mentioned ways is a sign it’s a scam.
Requesting Payment For a “Federal Student Tax”
There is no such thing as a Federal Student Tax. Scammers target and demand money from students and parents for imaginary taxes. When the targeted person refuses them, the criminal gets pushy and tells the potential victim that they will be arrested if they do not pay.
Asking Human Resources and Payroll Professionals For W-2 Data
There are phishing schemes targeting payroll and human resource professionals. They attempt to capture information on their W-2 form. The scammers pretend to be company executives and request information. The email will have the executive’s name and is sent to the payroll office asking for a list of employee names and their personal and financial data including their Social Security Number (SSN).
Acting as Software Companies to Deceive Tax Professionals
CyberCriminals will draft emails feigning as they are from a tax software firm. They try to deceive the professional by sending a link in an email for an important update that needs to be downloaded. What really happens is that they download malware and their keystrokes are captured. Their logins, passwords, and other sensitive data are stolen.
Verifying a Tax Return
Scammers will call you to say they have your tax return and need to verify details. They request your SSN or other personal information such as your credit card or bank data to set you up for theft.
Saying They Are From The Tax Preparation Industry
Thieves pretend to be the IRS or another type of software company. They phish by asking about a variety of topics by text or email regarding refunds, filing status, confirming personal information, PIN numbers, and possibly to order transcripts.
The IRS Has Certain Procedures and Will Not do Any of the Following:
- Call or demand payment using payment methods such as gift card, prepaid debit card, or wire transfer. Usually, they mail you a bill first if you owe them.
- Arrest you for not paying taxes. They will not send law enforcement to get you if you do not give them funds.
- Demand money from you without providing an opportunity to speak for yourself, question the amount or appeal what they say you owe.
- Ask for a payment on a debit card or credit card number over the phone.
If You do Receive a Call Saying They Are From The IRS Asking For Funds, Here is What You Can do:
- Do not talk to them. Hang up on them quickly
- Search the internet for the numbers they left on your voice mail requesting a callback. They might be linked to the criminals and listed online.
- Contact the Treasury Inspector General for Tax Administration (TIGTA) and report them. There is a web page labeled “IRS Impersonation Scam Reporting” on FTC.gov. Adding IRS Telephone Scam in the notes helps them identify your complaint.
- If you think you owe taxes, call the IRS at 800-829-1040 and speak to an agent.
If a suspicious email looks like it is from the IRS or agency related to the IRS, report it. Forward the email to phishing@irs.gov.
This information was previously found on cpapracticeadvisor.com, authored by Issac M. O’Bannon.
