Every year, thousands of taxpayers fall victim to IRS scams – fraudulent schemes where imposters pose as IRS agents to steal money or personal information. With the rise of sophisticated tactics, including AI-generated voices and phishing emails, it’s crucial to stay informed and vigilant.
Generally, the IRS will initiate contact by sending a letter or notice by postal mail. Depending on the situation, however, an IRS employee may also call or visit in person. So, how do you know if it’s the IRS or a scammer trying to contact you? Review the sections below to understand how the IRS communicates with taxpayers, and the warning signs you should look for before giving out any of your personal information.
How Does the IRS Contact Taxpayers?
Understanding the IRS’s official communication methods is key to identifying scams.
- Initial Contact by Mail: The IRS typically initiates contact through official letters sent via the U.S. Postal Service.
- In-Person Visits: In certain cases, such as audits or delinquent taxes, IRS agents may visit a taxpayer’s home or business. They will always present two forms of official credentials: a pocket commission and an HSPD-12 card.
- No Unsolicited Emails or Texts: The IRS does not initiate contact via email, text messages, or social media to request personal or financial information.
- No Threatening Phone Calls: The IRS will not call to demand immediate payment using specific methods like gift cards or wire transfers.
Common IRS Scams to Watch Out For
Scammers employ various tactics to deceive taxpayers. In fact, it’s become so commonplace that the IRS issues an annual “Dirty Dozen” to warn people about potential phishing attacks and other malicious communications. Here are some of the most prevalent IRS scams.
- Phishing Emails and Smishing Texts
Fraudsters send emails or texts claiming to be from the IRS, often with urgent messages about tax refunds or account issues. These messages may contain links to fake websites designed to steal personal information.
- Phone Scams with AI-Generated Voices
Using advanced technology, scammers create realistic voice recordings to impersonate IRS agents, threatening arrest or legal action if immediate payment isn’t made.
- Fake IRS Letters
Some scams involve counterfeit IRS letters that appear legitimate. These letters may demand payment or personal information and often include official-looking logos and language.
- Social Media Scams
Scammers may contact individuals through social media platforms, posing as IRS officials or tax professionals, and request personal information under the guise of helping with tax issues.
- Identity Theft Schemes
Criminals use stolen personal information to file fraudulent tax returns and claim refunds. They may obtain this information through data breaches, phishing, or other means.
Red Flags: How to Identify an IRS Scam
Be cautious if you encounter any of the following warning signs:
- Unsolicited Communication. Unexpected calls, emails, or messages claiming to be from the IRS.
- Threats and Urgency. Demands for immediate payment or threats of arrest, deportation, or license revocation.
- Payment via Unusual Methods. Requests for payment through gift cards, wire transfers, or cryptocurrency.
- Requests for Personal Information. Asking for sensitive data like Social Security numbers, bank account details, or passwords.
- Spoofed Caller ID. Caller ID displays “IRS” or a local IRS office number, but the call is fraudulent.
What to Do If You Suspect an IRS Scam
Do not open any attachments or click links in unsolicited, suspicious, or unexpected messages (text or email) claiming to be from the IRS, state tax agencies, or others in the tax community. These are common tactics by scammers to gain access to your computer, IRS account, and other financial information. Additionally, if you believe you’ve encountered a scam:
- Do Not Respond. Avoid engaging with the scammer. Do not provide any personal information or payment.
- Report the Incident.
- Email Scams: Forward the email to phishing@irs.gov.
- Phone Scams: Report the call to the Treasury Inspector General for Tax Administration (TIGTA) at https://www.treasury.gov/tigta or call 1-800-366-4484.
- FTC Complaint: File a complaint with the Federal Trade Commission at https://www.ftc.gov/complaint.
- Verify with the IRS. Contact the IRS directly by calling 1-800-829-1040 to confirm any legitimate tax issues.
Protecting Yourself from IRS Scams
To minimize your risk of being scammed, take these proactive steps to safeguard your information.
- Secure Personal Data. Shred sensitive documents and use strong, unique passwords for online accounts.
- Monitor Financial Accounts. Regularly check bank and credit card statements for unauthorized transactions.
- Use IRS Tools. Enroll in the IRS Identity Protection PIN program to prevent unauthorized tax filings.
- Stay Informed. Regularly visit the IRS website for updates on current scams and security tips.
Need Assistance with Tax Issues?
If you’re facing tax problems or have concerns about potential scams, the Tax Defense Network is here to help. Our experienced professionals can provide guidance and support to resolve your tax matters safely and effectively. For a free consultation, call 855-476-6920 today