Tech Savvy Tax Scams

February 10, 2014

Tax scam victims have reported being contacted by text message, tweets, email, social networking posts, phone calls and more.

What would you do if the IRS called you to say your tax payment was too low?  Or texted you to call a 1-800 number to confirm your social security number?  Or emailed you about a tax refund?  Warning:  IF you have received this kind of communication, it’s not from the IRS.

The new tax season is launching with new warnings about tax scams that use the IRS logo and lingo in more sophisticated and hard-to-track ways than ever before.

Tax Scam AlertTax Scammers today are tech savvy and use every kind of trick to try to cheat you out of your money and your identity.  Victims have reported being contacted by text message, tweets, email, social networking posts, phone calls and more.

Officials say in the most prevalent schemes, perpetrators tend to use the lure of a refund or fear of a new penalty to hook innocent taxpayers.  A tax scammer may pose as an IRS tax agent using very official sounding words on the phone or in emails or letters.

A common theme known as “phishing” includes a phone call or email saying the taxpayer owes more money and they should contact the IRS immediately or face a penalty.  The phone message or email provides a number to call that is a direct link to the scammer.  When the number is called, the scammer requires a taxpayer to ‘confirm’ their personal information (and/or bank account and/or credit card information) in order to make a payment right away.  In reality, the scammer is stealing that taxpayer’s identity and/or every penny from their financial accounts.

Another common tax scam involves filing fake tax returns using stolen social security numbers seeking refunds.  This kind of identity theft-based crime is the fastest growing tax-related crime.

Investigators say if you receive an unexpected call from the IRS threatening arrest, driver’s license revocation or deportation if a tax payment is not made immediately, you can be assured the call is from a scammer.

Some characteristics of scammers:

  • Scammers generally use fake common names and surnames to identify themselves.   “This is “Mr. Jim Williams of the IRS.”
  • Scammers will give you a fake IRS “badge” number.
  • Scammers may know the last four digits of your social security number and hope to trick you into giving them the rest of the number.
  • Scammers may back up a bogus call with a bogus email.
  • Scammers fake the IRS toll-free number on caller ID to make it seem real. (i.e. 800-IRS-CALL is fake.)
  • Victims say they often hear background noises on calls mimicking a call site.
  • More than one scammer may call; the first caller may make a threat and hang up.  A second caller soon afterwards will repeat the threat and may also claim to be with the police or DMV.
  • Some scammers claim a taxpayer has won a lottery, but in order to collect their winnings, they must first pay the taxes they owe on the prize.

The real IRS:

…never initiates contact with a taxpayer by email, text message nor social media.

…never requests personal or financial information by email or text.

…never requests personal identification numbers or passwords by email or phone.

The only IRS phone number a taxpayer needs to call to inquire about their federal income taxes is the IRS toll-free number:  800.829.1040.  The only official IRS website is:  www.irs.gov.

If you feel you have been the victim of a scam or were contacted by a scammer, click here to find out how to report the information.  Also, here is a link to a video with details on what to do if you have been a victim of a tax scam.

At McRuer CPAs we remind you to never give out your personal information over the phone, through the mail or on the internet unless YOU have initiated the contact and are sure of the recipient.  Please feel free to contact us with any questions.