4 IRS Scams You Should Watch Out For

Photo Provided by Got Credit.

We have blogged about several scams in the past, but it continues to be a problem.  Here are four fraud items that you should be aware of.

Phone Scam

This continues to be a big problem.  We have had about six of our clients this year experience it.  It is very frightening.  You get a call from someone claiming to be from the IRS.  They usually have a thick accent that sounds like they are from India or the Philippines.  They say that you owe the IRS money (usually $1000 to $10,000).  They tell you that if you do not pay while you are on the phone with them they will file a lawsuit, your driver’s license will be deactivated and that if you hang up before you pay, the police will show up in 20 minutes, arrest you and you will spend 5 years in Federal Prison.  They will try to keep you on the line while you go get cash from your bank and then have you put it on a reloadable debit card.  They are very intimidating and scary.  If you get a call, write down the person’s name and badge number, hang up and call the IRS at 1-800-366-4474.

Email Scam

I personally got this one in my email the other day.  The email comes with an attachment.  It says the  revenue service is going to organize tax inspections to determine whether you as a taxpayer have settled the correct amount of taxes.  They ask you to open the attachment and fill out the form and return it to them or call them and give them the requested information over the phone.  The form contains a request for personal information such as Social Security numbers and bank accounts.  It comes from someone claiming to be a Tax Advisor.  If you get this email or any email that asks you for information for the IRS, forward it to phishing@irs.org.

IRS Information Breach

It was recently announced that between February and May of this year, the department of the IRS that holds taxpayers accounts for obtaining transcripts was hacked into.  This means that if during that time you tried to go online and get copies of your tax return transcripts or account transcripts, your information was compromised.  There are several reasons people go online to get these transcripts but the two most common are mortgage loans and college FASFA applications.  If you feel that you may have been affected by this there is little you can do.  Be sure to monitor your credit score and make sure no one opens accounts in your name.  Also carefully monitor your bank accounts or even open new ones.  We know of one person already that was affected by this .  A tax return was filed with his name and Social Security number.

State Scam

Most of the scams we see involve the IRS, but there is one going around the country involving corporations and LLCs.  You receive a letter saying that you need to file your annual meeting minutes with the State.  They tell you it is required and if you don’t you could be charged fines.  They offer to file the meeting minutes for you for $250.  This group goes from state to state creating an address in that state.  The problem is that you are not required to file meeting minutes with the State.  Some state require an update of who the offices and members are and some even require information updates about the assets of the business.  If your state requires that, then they send you a form.  If you get this letter ignore it and throw it away.

Just a reminder: The IRS does not call you.  The IRS does not email you.  If you get a phone call or email and you are not sure, call us and ask before you respond.  At Soulence, we fell it is very important to do what we can to protect and educate our clients.  We also fell it is important for all taxpayers to get this information, so please share it with everyone you know.

Watch out for IRS Scams!

Photo courtesy of Julian Carvajal

Recently more than 20,000 people have been targeted by scammers claiming to be IRS agents in one of the largest phone scams the IRS has ever seen.  Thousands have lost a total of more than $1 million.  This is how it works:

What they are doing?

A fake IRS agent calls a taxpayer and claims the taxpayer owes taxes.  They demand payment in the form of a prepaid debit card or wire transfer.  Those who refuse are then threatened with arrest, deportation, loss of a business license or loss of a driver’s license.

Who are they targeting?

The scam started by targeting primarily immigrants but has spread to all taxpayers.  The scam has been effective because the fake agents mask their caller ID, making it look like the call is coming from the IRS.  In some cases, the fake agents even know the last 4 digits of Social Security numbers and follow up with official-looking emails.

How do you  protect yourself?

All you have to know is that the IRS always contacts taxpayers by mail first.  They never demand payment by debit card or wire transfer.  They also do not contact taxpayers via email.  If you get a call or an email, it’s a scam, and you should contact the IRS immediately.  The IRS has a special unit that investigates these complaints.  You can contact the IRS by calling 1-800-829-1040 or by email at phishing@irs.gov.

For more tax saving tips, visit us at soulence.com.

Are you Being Scammed by the IRS?

Is the IRS trying to scam you? No.  But there are many people pretending to be the IRS, and yes, they are trying to scam you.  We have written about this topic before, but over the past few weeks, there have been several fraudulent emails circulating that claim to be from the IRS.  These are called phishing scams, and in this case it is when you get an email that looks like it is from the IRS but is actually a scam intended to get your personal information.  We are particularly concerned because some of our clients and even some people in our office have recently received false emails. So we thought we would cover this again to make sure our readers do not fall victim to any of these scams.

Photo provided by o5com via flickr.com

Generally, what happens with one of these email scams is you receive an email that looks like it is from the IRS.  It has the IRS logo and claims that you have or might have a refund due to you.  It will ask you to click on a link to claim this refund.  If you click on the link, it will take you to a page that asks you to put in your personal information such as your Social Security number for verification purposes or your bank information so your refund can be direct deposited.  This is a very serious scam and there are thousands of them out there.  Also, these emails might also have dangerous viruses that can ruin your computer.

Here is what you need to know–The IRS NEVER sends emails.  Nope, not ever.  On the IRS website it states: “The IRS does not initiate taxpayer communications through email.”  So the IRS NEVER contacts anyone by email.  ( I hope you are noticing all these bolded “NEVERs”) If you get an email the IRS asks you to do the following:

1. Do not reply
2. Do not open any attachments
3. Do not click on any links
4. Forward the email as is to phishing@irs.gov
5. After you forward the email delete it

These are instruction directly from the IRS.  Also if you receive an unsolicited fax from the IRS, it should also be reported.  For more information about IRS phishing scams go to www.irs.gov and click on “report phishing.”

When it comes to the IRS you have to be in the know.  Check out our website www.avoidbeingaudited.com.  We have tons of free–easy to understand–information to help you understand how the IRS works and how to save money on your taxes.

IRS Phishing Scams are on the Rise

Have you ever received an email from some company claiming “your order got messed up” so they need your credit card number, address, and full name?  This is obviously a scam aimed at stealing your identity and/or credit card information.  Email scams like these are happening more and more. In fact, a member of our office staff received three just last week.  These types of emails cannot only be a threat to your identity and finances, but they often contain malicious viruses that can attack your computer.

Image provided by lovelypetal via flickr.com

A recent trend we are seeing is that people are imitating the IRS to perpetuate these scams. These emails look very official, sporting return addresses like admin@irs.gov. The IRS is a good strategy since they do require a lot of personal information.  So how do you know if you are being contacted by the actual IRS or being scammed?

Well, there is one simple rule: the IRS does not send out unsolicited emails. This means that if you did not contact them, they will only contact you by regular post mail! That’s right, the IRS is not going to send you an email; if they want to contact you it will be through old-fashioned “snail mail.”  Also, they will never ask for personal or financial information via email.  So they will never ask for social security numbers, PIN numbers, passwords or similar secret access information for credit cards, bank account numbers, or information for any other type of financial account.

So what do you do if you receive an unsolicited email from the IRS?  Here is an action checklist:

1. Don’t open it. Just opening these can place a virus on your computer.
2. Report the email to the IRS. Forward the email to phishing@irs.gov. The IRS has designated this email address for dealing with these email scams.
3. Delete the email. Get the email out of your inbox incase you accidently open it later.  There’s no sense in keeping it around for a sunny day that you like to make rainy.

Also, one last important thing to beware of is a phone call from the “IRS.” Again, the only way the IRS will contact you unsolicited will be by mail.  If someone calls you claiming to be from the IRS and asks you for your personal information, do not give it to them.  In fact, why not just tell them you are sorry that you have to go and that you will be waiting for their letter in the mail.

If you have any questions or are not sure if the email, phone call, or letter you have received from the IRS is legitimate or a scam, please contact us.  We are more than happy to help you protect yourself from scams and identity theft.