Category Archives: IRS tax scams

IRS Warns & Updates Taxpayers of Numerous Tax Scams Nationwide: All Taxpayers, Tax and Financial Advisers Need To Read This

irs-scams

You Do Not Want To Be In This Position

 

As tax season approaches, the Internal Revenue Service, in IR-2016-164,  has just reminded taxpayers to be on the lookout for an array of evolving tax scams related to identity theft and refund fraud.

Every tax season, there is an increase in schemes that target innocent taxpayers by email, by phone and on-line. Taxpayers and tax professionals can not be too careful and should be on the lookout for these deceptive schemes.

“Whether it’s during the holidays or the approach of tax season, scam artists look for ways to use tax agencies and the tax industry to trick and confuse people,” said IRS Commissioner John Koskinen. “There are warning signs to these scams people should watch out for, and simple steps to avoid being duped into giving these criminals money, sensitive financial information or access to computers.”

Here are Seven of the Most Prevalent IRS Impersonation Scams:

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Fraud Alert: Latest Reprehensible Tax and Financial Scam: Phony Charitable Contributions To Aid Typhoon Victims

IRS Alert: Charitable Contribution Scam

Typhoon Haiyan Disaster

The Internal Revenue Service has just issued a consumer alert about possible scams taking place in the wake of Typhoon Haiyan.  As most of us know, on Nov. 8, 2013, this typhoon known as Yolanda in the Philippines – made landfall in the central Philippines, bringing strong winds and heavy rains that have resulted in flooding, landslides, and widespread damage and personal devastation.

Following major disasters, it is now increasing common for scam artists to impersonate charities to get money or private information from well-intentioned taxpayers.

Fraudulent Contact:

Such fraudulent schemes may involve contact in many ways including the following:

  • Telephone
  • Social media
  • Email or
  • In-person solicitations.

Tips To Avoid Being Scammed:

To avoid your own personal financial disaster, please follow these recommendations:

  • To help disaster victims, donate only to recognized charities.
  • Be wary of charities with names that are similar to familiar or sound like nationally known organizations.
  1. Some phony charities use names or websites that sound or look like those of respected, legitimate organizations.
  2. The IRS website at IRS.gov has a search feature, Exempt Organizations Select Check, through which people may find legitimate, qualified charities; this will help make sure that the donations to these charities are tax-deductible.
  3. Legitimate charities may also be found on the Federal Emergency Management Agency (FEMA) website at fema.gov.
  • BASIC RULE OF LIFE:  Don’t give out personal financial information — such as Social Security numbers or credit card and bank account numbers and passwords — to anyone soliciting contributions.  Scam artists may use this information to steal your identity and money.
  • Don’t give or send cash. For security and tax record purposes, contribute by check or credit card or another way that provides documentation of the gift.  Please read IRS Slams Taxpayers: Attention to Tax Details Matter to learn why this is so important from a tax perspective.

    • Ultra-Careful Tip #1:  In fact, it is probably better to use your credit card as your card company may protect you against such fraudulent charges.
  • If you plan to claim a deduction for your contribution, see IRS Publication 526, Charitable Contributions, to read about the kinds of organizations that can receive deductible contributions.
    • Ultra-Careful Tip #2: Even in situations where there is no fraud, it is prudent to make sure the organization is a qualified tax-exempt organization under federal law.  You may be unpleasantly surprised to know that many organizations erroneously hold themselves out as tax-qualified.  This can result in some nasty tax consequences if an audit by the IRS determines that the organization was not tax-exempt and disallows your charitable deduction.

Bogus Websites and E-Mails:

Bogus websites may solicit funds for disaster victims. Such fraudulent sites frequently mimic the sites of, or use names similar to, legitimate charities, or claim affiliation with legitimate charities to persuade members of the public to send money or provide personal financial information that can be used to steal identities or financial resources.

Additionally, fraudsters often send e-mail that steers the recipient to bogus websites that seem affiliated with legitimate charitable causes.

Final Thoughts:

This is such a sad commentary about our world.  The old refrain “No good deed goes unpunished” is clearly applicable here.  It seems our best and noblest intentions can and will be used against us.  Vigilance, skepticism and prudence are imperative even when we are trying to do the right thing.

Does this kind of fraud strike a nerve or really make you angry?  Or are we just numb to it all and just pass it off as the way of the world? What are your thoughts?  Be sure to let me know what you think in the Leave a Reply below.

As required by United States Treasury Regulations, you should be aware that this communication is not intended by the sender to be used, and it cannot be used, for the purpose of avoiding penalties under United States federal tax laws.

As required by United States Treasury Regulations, you should be aware that this communication is not intended by the sender to be used, and it cannot be used, for the purpose of avoiding penalties under United States federal tax laws.

Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm’s full disclaimer.

Renewed Warning: IRS Tax Scam Alert and What To Do To Protect Yourself: Scary and Disturbing Tactics By Phony IRS Agents

NIgerianPhoneScam

“These scams are better scripted than some Hollywood movies.”
419 Nigerian Scam Victim

The IRS just renewed its October, 2013 warning about a pervasive phone scam that continues to target people across the nation, including recent immigrants. The Treasury Inspector General for Tax Administration called it the largest scam of its kind. As of March 20, this tax division reported that it has received reports of over 20,000 contacts related to this scam. It also stated that thousands of victims have paid over $1 million to fraudsters claiming to be from the IRS.

As some of you may recall, on Halloween the IRS announced (IR-2013-84) the newest and scariest phone scam.  Someone has a sick sense of humor out there.

This sophisticated and sinister phone scam targets taxpayers,  especially recent immigrants, throughout the country.

Details of This Phone Scam According to the IRS

In this scam, the thief poses as the IRS and makes an unsolicited call to their target. The caller tells the victim they owe taxes to the IRS. They demand that the victim pay the money immediately with a pre-loaded debit card or wire transfer. If the victim refuses to cooperate, they are then threatened with arrest, deportation or suspension of a business or driver’s license. In many cases, the caller becomes hostile and insulting.  As I said, this is really scary stuff.

“This scam has hit taxpayers in nearly every state in the country.  We want to educate taxpayers so they can help protect themselves.  Rest assured, we do not and will not ask for credit card numbers over the phone, nor request a pre-paid debit card or wire transfer,” says IRS Acting Commissioner Danny Werfel. My advice: If you get such a call, hang up immediately!

“If someone unexpectedly calls claiming to be from the IRS and threatens police arrest, deportation or license revocation if you don’t pay immediately, that is a sign that it really isn’t the IRS calling.”  Be aware that the IRS does not contract taxpayers in this fashion.  In almost all cases, the first IRS contact with taxpayers on a tax issue occurs by mail.

Other characteristics of this scam that may lead you to believe that this is a legitimate phone call and to intimidate you into giving them what they want  include the following:

  • These impostors use fake names and IRS badge numbers.
  • They generally use common names and surnames to identify themselves.
  • These con artists may be able to recite the last four digits of a victim’s Social Security Number.
  • These crooks spoof the IRS toll-free number on caller ID to make it seem that it’s the IRS calling.
  • They 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.
  • After threatening victims with jail time or driver’s license revocation, these charlatans hang up and others soon call back pretending to be from the local police or DMV, and the caller ID supports their claim.

As you can see, these guys are good.  Do not under any circumstances give them any information or pay them a thing no matter how threatened you may feel!

How To Protect Yourself

If you get a phone call from someone claiming to be from the IRS, here’s what you should do:

  • If you know you owe taxes or you think you might owe taxes, hang up immediately and call your tax attorney, your accountant or the IRS at 800-829-1040. The IRS employees at that line can help you with a payment issue – if there really is such an issue.  This way you know for sure you are dealing with the IRS.
  • If you know you don’t owe taxes or have no reason to think that you owe any taxes (for example, you’ve never received a bill or the caller made some bogus threats as described above), once again, immediately hang up and then call and report the incident to the Treasury Inspector General for Tax Administration at 800-366-4484.
  • If you’ve been targeted by this scam, you should also contact the Federal Trade Commission and use their “FTC Complaint Assistant” at FTC.gov. Please add “IRS Telephone Scam” to the comments of your complaint.

Other Scams

Taxpayers should be aware that there are other unrelated scams (such as a lottery sweepstakes) and solicitations (such as debt relief) that fraudulently claim to be from the IRS. The 419 Nigerian scam depicted in the picture above resulted in losses to many victims in that country.  No matter how believable or how much you are intimidated, never let your guard down and stay skeptical and vigilant.

Know How The IRS Operates

  • The IRS usually first contacts people by mail – not by phone – about unpaid taxes.
  • The IRS does not initiate contact with taxpayers by email to request personal or financial information. In this case, “snail” mail is a good thing.
  • They do not use any type of electronic communication, such as text messages and social media channels.
  • The IRS also does not ask for PINs, passwords or similar confidential access information for credit card, bank or other financial accounts.
  • The IRS won’t ask for payment using a pre-paid debit card or wire transfer. The IRS also won’t ask for a credit card number over the phone.
  • Recipients should not open any attachments or click on any links contained in any message that seems to be from the IRS. Instead, forward the e-mail to phishing@irs.gov.

 

Bottom Line:

  • Be wary of any unexpected phone or email communication allegedly from the IRS.
  • Don’t fall for phone and phishing email scams that use the IRS as a lure.
  • Thieves often pose as the IRS using a bogus refund or warnings to pay past-due taxes.
  • If someone calls you about taxes, they will tell you whether it is the IRS or some state or local authority.  Get their name and badge number and do not give them any information or money.  Then hang up and call that taxing authority directly to get to the bottom of the situation.

Has anyone been a victim of this scam or other scams or fraud?  Please share your experiences in the Leave A Reply area below.

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As required by United States Treasury Regulations, you should be aware that this communication is not intended by the sender to be used, and it cannot be used, for the purpose of avoiding penalties under United States federal tax laws.

Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm’s full disclaimer.