Scams

Tax Scams [Video]


Tax Scams/Consumer Alerts

If it sounds too good to be true, it probably is! In recent years, thousands of people have lost millions of dollars and their personal information to tax scams and fake IRS communication. This page looks at the scams affecting individuals, businesses, and tax professionals and what do if you if you spot a tax scam.

REMEMBER: The IRS doesn’t initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information.  In addition, IRS does not threaten taxpayers with lawsuits, imprisonment or other enforcement action.  Being able to recognize these tell-tale signs of a phishing or tax scam could save you from becoming a victim.

IRS-Impersonation Telephone Scams

An aggressive and sophisticated phone scam targeting taxpayers, including recent immigrants, has been making the rounds throughout the country. Callers claim to be employees of the IRS, but are not. These con artists can sound convincing when they call. They use fake names and bogus IRS identification badge numbers. They may know a lot about their targets, and they usually alter the caller ID to make it look like the IRS is calling.

Victims are told they owe money to the IRS and it must be paid promptly through 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. Or, victims may be told they have a refund due to try to trick them into sharing private information. If the phone isn’t answered, the scammers often leave an “urgent” callback request.

Note that the IRS will never:

  • Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail you a bill if you owe any taxes.
  • Threaten to immediately bring in local police or other law-enforcement groups to have you arrested for not paying.
  • Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
  • Ask for credit or debit card numbers over the phone.

Remember: Scammers Change Tactics — Aggressive and threatening phone calls by criminals impersonating IRS agents remain a major threat to taxpayers, but variations of the IRS impersonation scam continue year-round and they tend to peak when scammers find prime opportunities to strike.

Surge in Email, Phishing and Malware Schemes

The IRS saw an approximate 400 percent surge in phishing and malware incidents in the 2016 tax season.

Scam emails are designed to trick taxpayers into thinking these are official communications from the IRS or others in the tax industry, including tax software companies. These phishing schemes can ask taxpayers about a wide range of topics. Emails can seek information related to refunds, filing status, confirming personal information, ordering transcripts and verifying PIN information.

Variations of these scams can be seen via text messages, and the communications are being reported in every section of the country.

When people click on these email links, they are taken to sites designed to imitate an official-looking website, such as IRS.gov. The sites ask for Social Security numbers and other personal information, which could be used to help file false tax returns. The sites also may carry malware, which can infect people’s computers and allow criminals to access your files or track your keystrokes to gain information.

Email Phishing Scam: “Update your IRS e-file”

The IRS is aware of email phishing scams that appear to be from the IRS and include a link to a bogus web site intended to mirror the official IRS web site. These emails contain the direction “you are to update your IRS e-file immediately.” The emails mention USA.gov and IRSgov (without a dot between “IRS” and “gov”), though notably, not IRS.gov (with a dot). Don’t get scammed. These emails are not from the IRS.

What do you do if you get these messages?

  • Do not respond to the email or click on the links.
  • Instead, they should forward the scam emails to the IRS at phishing@irs.gov.

For more information, visit the IRS’s Report Phishing web page.

Remember, the IRS does not initiate contact with taxpayers by email to request personal or financial information.

Tax Refund Scam Artists Posing as Taxpayer Advocacy Panel

According to the Taxpayer Advocacy Panel (TAP), taxpayers are receiving emails that appear to be from TAP about a tax refund. These emails are a phishing scam, where unsolicited emails which seem to come from legitimate organizations — but are really from scammers — try to trick unsuspecting victims into providing personal and financial information. Do not respond or click the links in them. If you receive an email that appears to be from TAP regarding your personal tax information, please forward it to phishing@irs.gov and note that it seems to be a scam email phishing for your information.;

TAP is a volunteer board that advises the IRS on systemic issues affecting taxpayers. It never requests, and does not have access to, any taxpayer’s personal and financial information such as Social Security and PIN numbers or passwords and similar information for credit cards, banks or other financial institutions.

Education is the best way to avoid the pitfalls of these “too good to be true” tax scams. For more information, see:

Phony Arguments

No matter how some things are sliced, they’re still baloney. If someone tells you that you don’t have to pay taxes, check out The Truth About Frivolous Tax Arguments. This IRS.gov exclusive addresses some of the more common false legal arguments made by those opposed to compliance with the federal tax laws. Each contention is briefly explained, followed by a discussion of the legal authority that rejects the contention. The second section deals with frivolous arguments encountered in collection due process cases. The final section illustrates penalties imposed on those pursuing frivolous cases.

Identity Theft Scams

The IRS has issued several consumer warnings about the fraudulent use of the IRS name or logo by scammers trying to gain access to consumers’ financial information in order to steal their identity and assets. Scammers will use the regular mail, telephone, fax or email to set up their victims. When identity theft takes place over the Internet (email), it is called phishing.

The IRS does not initiate taxpayer communications through email. Unsolicited email claiming to be from the IRS, or from an IRS-related component such as EFTPS, should be reported to the IRS at phishing@irs.gov.

Additionally, clicking on attachments to or links within an unsolicited email claiming to come from the IRS may download a malicious computer virus onto your computer.

Taxes. Security. Together Learn more about how the IRS, representatives of the software industry, tax preparation firms, payroll and tax financial product processors and state tax administrators are working together to combat identity theft and refund fraud.

Learn how to protect your personal information.

…read more

Source: IRS Gov

Thanks, IRS Gov and for reading Tax Scams

See Also Identity Theft [Video]

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Dr Don
Founder/Admin The Internet Crime Fighters Org, Admin DrDony's Reviews, http://drdonysreviews.com, Author The Internet Users Handbook, See more http://about.me/drdony
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Comments

  1. Reply

    7 Simple Rules to Avoid Tax Scams in 2017 Don’t get conned out of your hard-earned money. These seven rules can help you quickly identify tax scammers. http://www.fool.com/retirement/2017/01/08/7-simple-rules-to-avoid-tax-scams-in-2017.aspx

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    COMMON TAX SCAMS FOR 2017 AND HOW TO AVOID THEM Most tax scams fall under three major categories: fraudulent returns, phone scams and phishing. http://europe.newsweek.com/common-tax-scams-how-avoid-537060?rm=eu

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    Canada Revenue Agency scammers trying new tax fraud on old victims http://www.lfpress.com/2017/01/26/canada-revenue-agency-scammers-using-new-tactics-rcmp-said

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    Don’t Get Sucked In by These 2017 Tax Scams The IRS has issued a list of “Dirty Dozen” tax scams. Learn how to avoid them, to minimize headaches and keep more of your dollars in your pocket. http://www.fool.com/retirement/2017/01/28/dont-get-sucked-in-by-these-2017-tax-scams.aspx

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    Tax Scammers Might Target You: Here’s What to Do http://whnt.com/2017/01/29/tax-scammers-might-target-you-heres-what-to-do/

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    Reference

    IRS Warns Of Biggest Tax Scam Ever http://www.10tv.com/article/irs-warns-biggest-tax-scam-ever

    Beware of scams as tax time arrives http://www.parkeschampionpost.com.au/story/3997765/beware-of-scams-as-tax-time-arrives/

    World’s Biggest Scams You Need to Know [Infographic] http://blog.pawnhero.ph/worlds-biggest-scams-you-need-to-know/

    Call Christina hotline flooded with reports of IRS imposters http://www.local10.com/consumer/call-christina/call-christina-hotline-flooded-with-reports-of-irs-imposters

    IRS warns of bogus ‘Federal Student Tax’ http://www.wmicentral.com/business/business_news/irs-warns-of-bogus-federal-student-tax/article_93faedca-3f05-11e6-8456-ebd9e5e71395.html

    IRS outlines new ways to fight tax fraud Read more: http://www.bankrate.com/financing/taxes/irs-outlines-new-ways-to-fight-tax-fraud/#ixzz4DJft0CAr

    Watch out for these tax time scams http://www.news.com.au/finance/money/tax/watch-out-for-these-tax-time-scams/news-story/6f48e0df0a896a61caee9fe0df253f5f

    Simple steps to avoid identity theft http://www.usatoday.com/story/money/columnist/2016/07/02/simple-steps-avoid-identity-theft/85697192/

    Top 10 Tax Scams https://turbotax.intuit.com/tax-tools/tax-tips/General-Tax-Tips/Top-10-Tax-Scams/INF29183.html

    Dirty Dozen Tax Scams https://www.irs.gov/uac/newsroom/dirty-dozen-2016

    Scam Phone Calls Continue; IRS Identifies Five Easy Ways to Spot Suspicious Calls https://www.irs.gov/uac/newsroom/scam-phone-calls-continue-irs-identifies-five-easy-ways-to-spot-suspicious-calls

    Tax Scams/Consumer Alerts https://www.irs.gov/uac/tax-scams-consumer-alerts

  11. Reply

    STANFORD UNIVERSITY WOMAN SCAMMED OUT OF $8,000 IN FAKE SCHOLARSHIP TAX SCAM https://lendedu.com/news/stanford-university-woman-scammed-out-of-8000-in-fake-scholarship-tax-scam/

  12. Reply

    Carousel Tax Scams at Center of Singapore Draft GST Bill https://www.bna.com/carousel-tax-scams-n73014451504/

  13. Reply

    Tax scam season – how to stay one step ahead of the fraudsters Tax scams are an ever-present danger but one that’s especially acute at this time of year, as criminals set their sights on consumers, the self-employed or small businesses drawn in by the opportunity of a rebate http://www.information-age.com/tax-scam-season-stay-one-step-ahead-fraudsters-123466485/

  14. Reply

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