Fake Tax Notices and Other Scams: Part II

There’s an ongoing scam out there involving fake call centers claiming to be the US tax authorities and demanding bogus unpaid taxes. How can you avoid falling victim to this scam?

Welcome to the second part of my two-part series dealing with fake tax notices and other scams you need to watch out for. First, I’m happy to report some good news about fake IRS collection scams.

Last week, authorities in India arrested about 70 people and are questioning hundreds more after uncovering a massive scam to cheat thousands of Americans out of millions of dollars by posing as US tax authorities and demanding unpaid taxes.

According to police in Mumbai, the year-long scam involved fake call centers which sent voicemail messages threatening US citizens with collection action because they supposedly owed back taxes. Those who called back believed the threats and would fork over thousands of dollars to “settle” the debt. The payment methods demanded were made by cashier’s checks, gift cards, and vouchers.

These scammers collected up to $150,000 per day and the estimated total collected is about $30 million. It is believed that up to 600 people in India were involved and they had a US-based partner providing names and telephone numbers of vulnerable US citizens. The IRS has received up to 900,000 complaints about similar scam calls since October 2013. More than 5,000 people have fallen for this scam, paying out over $26 million.

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Never give any information away to someone you don’t know.

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What can you do to avoid falling victim to a scam like this?

First, remember that the real IRS will never call and demand immediate payment. Neither will it ever require you to use a specific payment method for paying your taxes, such as a gift card or a prepaid debit card. The IRS will also never ask for credit card numbers over the phone.

If you receive a call from someone claiming to be from the IRS who is asking for money, don’t give out any personal information. Instead, report the call to the IRS using their IRS Impersonation Scam Reporting web page. You can also call (800)-366-4484.

Don’t simply say “OK” and send money. Not ever.

If you have a personal policy of never giving information to someone you don’t know, you can protect yourself from scammers. Don’t give any personal information, banking information, credit card numbers, or social security numbers to anyone that contacts you first.

If you have tax problems, hire a qualified tax problem specialist. We have experience in strategies in negotiating with the IRS to get you the lowest amount that you have to pay. If you have any questions, have a tax problem, or know someone who has a tax problem, feel free to call me or send me an email. I’d be happy to help!

Don’t Be Fooled by Fake Tax Notices

Unfortunately, tax scammers and thieves are still finding new ways to try and obtain our personal information. Look out for this recent IRS scam.

Scammers and thieves are descending on us now more frequently than ever. Last year we encountered a con in which scammers would call ordinary citizens and tell them that they were being sued by the IRS and that the only way to prevent it was to send them money. I personally received one of these calls and several of my clients contacted me about getting these calls. Don’t be duped into giving these thieves any information at all—just hang up the phone.

Remember, the IRS will never call you about a collection without first sending you frequent notices. These scam artists are counting on a small fraction of us to fall for this.

Unfortunately, scammers are getting even more clever. They are now beginning to mail fake IRS notices through the mail to unsuspecting citizens as well. Look at the one in the video above for an example.

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Do not give your personal information to anyone you don’t know.

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I am a member of a non profit organization called the ASTPS, or the American Society of Tax Problem Solvers, and just this week they sent out a warning about this new scam. These fake notices even include a case number, notice type, and phone number to call; however, there are a few clear indications of fakery on here. For example, the address on the fake notice above is wrong and the letter asks you to send money to the IRS when in reality you would be sending payment to the United States Treasury. The phone number that is blacked out is actually a valid IRS refund number, but calling this number would get you nowhere.

Most individuals and tax preparers would not be able to detect the problems with this notice, so be extra careful if you get a letter like this. What should you do if you get a letter from the IRS?

First of all, you’ll probably already know whether you have a problem because you’ll know if you have failed to file or pay taxes. If you know that you have a problem like this, the letter is most likely legitimate. If you know that your finances are in order with the IRS, then it is likely that the letter is fake. In any event, you should either look up the phone number on the IRS website or contact your tax professional to look into it. Do not simply send money to the address on the letter.

Protect yourself from scammers by never giving information to anybody that you don’t know. Do not give out your personal information, banking information, credit card numbers, or social security numbers to anyone that contacts you first.

If you have any questions about scams like these, have a tax problem, or know somebody that does, don’t hesitate to give me a call or send me an email. I look forward to hearing from you!