How to Spot an IRS-Related Scam
Beware of IRS-related scams! Scammers will typically reach out to you for personal information such as your social security number, filing status, refund amount, and other data that you may put on your tax return. In this blog post, we'll go over some ways to spot an IRS-related scam, how the IRS may contact you, and how to respond to the IRS.
Common IRS Scam Tactics
There are many ways that a scammer may try to contact you. They will typically use threatening language to scare you into providing them information.
Email, text message, and social media scams
This is a pretty easy one to determine if it's a scam since the IRS will never contact you via email, text message, or social media about tax debts or refunds. If you receive a message claiming to be from the IRS, do not open it or click any links. Links may lead you to a fake website that's trying to steal your information or could load malware onto your device.
You can forward the email to phishing@irs.gov to report it.
Phone scams
There are many phishing scams by telephone and these people may provide a fake name, an IRS identification badge number, and can even spoof the IRS phone number or caller ID, making them sound convincing. However, the IRS will never request payment over the phone. If you receive a call you demanding immediate payment, don't provide any information, and hang up.
Letter mail scams
The IRS will typically mail a taxpayer as their first form of contact, so letters from the IRS may be legitimate. So, how do you figure out if a letter you receive is a scam or not?
Signs of an IRS-related scam
Here are some things that the IRS will never do:
Demand you pay by a specific payment method — the IRS will always provide options for payment.
Request you pay by a prepaid debit card or gift card.
Demand immediate tax payment.
Threaten to bring law enforcement to arrest you for not paying.
Threaten to revoke a license or immigration status.
If the person contacting you does any of the above, it is a scam and you should not provide them any information. To see a list of common IRS scams that have been reported, you can visit the Tax Scams/Consumer Alerts on the IRS website.
How the IRS may contact you
There are times when the IRS may contact you, so it's important to know when a communication is legitimate so you can take care of it in a timely manner.
By mail
The IRS may send you a notice or letter through the U.S. Postal Service. This is generally their first way of trying to contact you. If you owe tax, the IRS will give you options for how to pay, how to respond, or complete the form, and they will notify you of your right to appeal or question the amount that you owe. You can look up your notice or letter on the IRS website to learn more.
By phone
There are circumstances that the IRS may call you, however, they are quite rare. Typically, you will first receive a notice by mail and then they will attempt to call you if you don't respond to their letter(s). Here are some reasons that IRS may call you:
You have an overdue tax bill.
They need to secure a delinquent tax return or delinquent employment tax payment.
They need to tour a business as part of an audit or criminal investigation.
If you are worried about a call, you should record the employee's name, badge number, call-back number, and caller ID. You can then call 1-800-366-4484 to determine if the caller is an IRS employee. If you verify that they are an IRS employee, you should call them back.
In-person
An in-person visit from the IRS is also very rare, but it may happen if they are unable to contact you any other way. Here is what you can expect if an IRS agent visits you:
They will provide their Personal Identity Verification (VIC) Credential.
If requesting payment, they will request it be made to U.S. Treasury.
If an IRS employee is conducting a criminal investigation, they are federal law enforcement agents and will never demand money.
Private Collection Agencies
The IRS may assign a private debt collection agency to collect overdue tax debts. Here's what you need to know about this program:
The IRS will send you a letter informing you that they have turned over the case to one of the agencies they work with.
The agency will send you a letter confirming that they have been assigned to your case.
You will only be assigned to one of the agencies, never to multiple.
Representatives will ask for payment to the "U.S. Treasury."
So, if a third party reaches out to you, don't be too alarmed. The IRS may be working with them to collect unpaid debt. You can find the list of private collection agencies on the IRS website.
How to Respond to the IRS
If you have determined that it is the IRS that is reaching out to you, you will be provided with specific information on what actions you need to take. The IRS will always provide you with the opportunity to appeal or ask questions about notifications you receive.
We hope this post has helped you spot the warning signs of an IRS scam. Stay safe!
Disclaimer: This material is prepared for informational purposes only, and is not tax advice. Please speak with a tax professional or visit the additional resources below to see how this information may apply to you.
