Tax Season Alert: How to Spot and Avoid IRS Phone Scams

Declan
July 28, 2024
5 min read
Man standind before laptop and giving money to the hand in the laptop

As tax season comes closer, Australians need to watch out for IRS phone scams. These scams are getting more common, with fraudsters pretending to be IRS officials. They use high-pressure tactics to ask for money right away. They might call you about taxes you owe or send phishing emails for your personal details.

Key Takeaways

  • IRS scammers may have personal information like the last four digits of your Social Security Number or your birthday, making their calls seem more convincing.
  • Avoid offering any additional personal or financial information during suspicious IRS phone calls, and hang up immediately.
  • Beware of high-pressure tactics, such as threats of legal action, that often require payment through difficult-to-trace methods like wire transfers or prepaid cards.
  • If you receive a suspicious IRS call, hang up and contact the IRS directly at 800-829-1040 to verify the legitimacy of the request.
  • Phishing emails with fake IRS logos are another common tactic used by scammers to steal your personal and financial information.

Knowing how IRS scammers work and how to protect your info can keep you and your family safe from these tax scams.

Understanding IRS Phone Scams

Tax season is a time when scammers target people. They pretend to be from the Australian Taxation Office (ATO) or the Australian Internal Revenue Service (IRS). They aim to take money and personal details. It's key for taxpayers to know how these scammers work to stay safe.

What Are IRS Phone Scams?

IRS phone scams happen when scammers call taxpayers without asking, saying they owe taxes or have a refund. They might threaten arrest, deportation, or losing a license if you don't pay right away. They could ask for your social security number or want payment on gift cards, wire transfers, or prepaid debit cards.

Common Tactics Used by Scammers

  • Spoofing caller ID to look like it's from the iRS or another government agency
  • Leaving scary voicemail messages about taxes or legal trouble
  • Wanting you to pay right away through unusual ways like gift cards or wire transfers
  • Asking for personal or financial info, such as social security numbers or bank details
  • Threatening arrest, deportation, or losing a license if you don't do what they say

The IRS will never call or email to demand money or personal info right away. If you get a suspicious call, hang up and call the irs to check if it's real.

Identifying Legitimate IRS Communications

Dealing with the Australian Taxation Office (ATO) or the Internal Revenue Service (IRS) requires knowing how to spot real from fake messages. Scammers can make their calls look like they're from official places like the ATO or IRS. But, there are ways to check if any IRS contact is real.

How the IRS Contacts Taxpayers

The IRS usually contacts people through the mail with letters and notices. Here are some things to remember about real IRS messages:

  • IRS letters will have your Social Security Number or IRS account number on them.
  • Real IRS notices are checked carefully and don't have typos or grammar mistakes.
  • The IRS won't threaten to arrest you or ask for money in weird ways like gift cards or wire transfers.
  • They will tell you about your tax debt and how you can pay, not just demand money.

Verifying IRS Debt and Payment Options

If you're unsure about any IRS debt or how to pay, here's what you can do:

  1. Look at your tax account online at the IRS website.
  2. Call the IRS at 1800-829-1040 to talk about your account and payment choices.
  3. If you get a letter saying you owe back taxes, call the IRS to check if it's true before paying anything.

By following these steps, you can avoid IRS scam calls and make sure you're talking to the real tax people.

IRS Phone Scams

Tax season is a time when scammers target people with IRS phone scams. They pretend to be IRS workers, asking for money or promising big refunds. It's important for Australians to watch out and know the signs of these scams.

Scammers often ask for money on prepaid debit cards, gift cards, or wire transfers right away. The real IRS doesn't call or threaten like this. They might say you owe taxes and must pay quickly to avoid trouble.

  • Over 1,029,601 Americans have received IRS impersonation scam calls.
  • $29,100,604 has been reported lost to IRS phone scams as of March 2016.
  • Most victims of these IRS impersonation scams are aged 20-29 years old.
  • Women are more affected by IRS phone scams than men.

Be careful of calls, texts, or emails saying they're from the IRS. The IRS always starts with a letter, never asks for money right away, and lets you question any amount owed. If you get a suspicious call, hang up and tell the authorities.

Protecting Yourself from IRS Impersonation Scams

As tax season comes closer, it's key for Australians to watch out for IRS impersonation scams. These scams involve scammers pretending to be IRS officials to get personal and financial details from people.

Red Flags to Watch Out For

Scammers might look real by showing fake IRS numbers on caller ID or using the IRS logo in emails. But, there are clear warning signs to spot, such as:

  • They ask for immediate payment on prepaid debit cards, gift cards, or wire transfers
  • They threaten arrest, deportation, or legal action if you don't pay "back taxes" or a "penalty"
  • They want your social security number, personal information, or bank account information
  • They say you're due a big tax refund but need your personal or financial information to get it

Steps to Take if You Receive a Scam Call

If a suspicious call claims to be from the IRS, don't give out any personal information or make a payment. Hang up right away and tell the Treasury Inspector General for Tax Administration at 1800 366 484 about it. Also, report it to the Federal Trade Commission.

The IRS never contacts people by phone, email, text, or social media to ask for immediate payment or personal details. If you really owe taxes or have questions about your tax return, talk to the IRS directly. Use their official website or the number on your tax papers.

By staying alert and knowing about these scams, you can keep your personal information safe from fraudsters pretending to be from the IRS.

Reporting IRS Impersonation Scams

As tax season comes closer, Australians need to watch out for IRS phone scams. These scams try to trick people out of their money. If you get a call that seems fishy from the IRS, act fast to keep yourself safe and report it.

Reporting to TIGTA and the FTC

If you get a suspicious IRS call, jot down the number and hang up right away. Then, tell the Treasury Inspector General for Tax Administration (TIGTA) about it. You can use their IRS Impersonation Scam Reporting form or call 800-366-4484.

You can also report these scams to the Federal Trade Commission (FTC). Go to FTC.gov or call 1-877-FTC-HELP to file a complaint.

Reporting Phishing Attempts to the IRS

Don't open unsolicited emails that claim to be from the IRS or EFTPS. Report them to the IRS at phishing@irs.gov with "IRS Phone Scam" in the subject line. This helps the IRS and law enforcement tackle these phishing attempts.

By reporting these scams, Australians can help fight against IRS impersonation scams. This keeps everyone safe from these fake schemes.

Staying Vigilant During Tax Season

As tax season comes closer, it's key to watch out for IRS impersonation scams. Scammers often target people during this time with fake tactics. By knowing what to look out for and taking simple steps, you can keep your info safe.

Additional Tips and Resources

Here are more ways to stay safe from IRS impersonation scams:

  • Be careful of unsolicited emails, texts, or social media messages that ask for your personal or financial details. The IRS won't contact you through these methods.
  • Check if any messages claiming to be from the IRS are real by calling the agency at 1-800-829-1040. Don't share any private info unless you called them first.
  • Look at the IRS website (irs.gov) for the latest on tax scams and how to deal with identity theft and fraud.
  • Follow the IRS on social media like Twitter and Facebook for updates on scams.
  • If you think you've been scammed, tell the Treasury Inspector General for Tax Administration (TIGTA) and the Federal Trade Commission (FTC) right away.

By staying alert and protecting your info, you can lower the chance of getting scammed during tax season and other times.

Conclusion

Australian taxpayers need to stay alert during tax season to avoid IRS impersonation scams. Knowing how scammers work and spotting real IRS messages helps. Always report any odd activity to lower your risk.

The IRS will never call or email to ask for money right away or threaten legal action. If a call or message seems fishy, hang up and tell the authorities right away. Keeping up with IRS scams helps protect you.

By working together, we can stop these scams. This way, Australians can file their taxes safely and without worry.

The Treasury Inspector General for Tax Administration has seen over 20,000 reports of IRS phone scams. Thousands of people have lost over $1 million to scammers pretending to be from the IRS. It's crucial to watch out for and report these scams to keep your info safe.

FAQ

What are IRS phone scams?

IRS phone scams are when fraudsters pretend to be from the IRS. They try to get victims to share personal and financial details. This info can be used to steal identities and assets.

What are some common tactics used by scammers in IRS phone scams?

Scammers use tactics like pressure and threats to get information. They might say you owe taxes and must pay right away. They might also threaten arrest or deportation.

They could ask for payment on prepaid debit cards, gift cards, or wire transfers. These are all red flags.

How does the IRS typically contact taxpayers?

The IRS usually sends a paper bill first if you owe taxes. In some cases, they might call or visit you. But they never call or email to demand payment or threaten action without warning.

How can I verify if I owe taxes to the IRS and what payment options are available?

Check your tax account online at IRS.gov to see if you owe taxes. Look at your payment options there. The IRS won't call about refunds or demand payment on a prepaid debit card or wire transfer without warning.

What should I do if I receive a suspicious call claiming to be from the IRS?

If you get a suspicious call, don't give out any information. Hang up right away. Then, report the call to the Treasury Inspector General for Tax Administration (TIGTA) and the Federal Trade Commission.

How can I report IRS impersonation scams and phishing attempts?

Report IRS impersonation scams to TIGTA using their IRS Impersonation Scam Reporting form or call 800-366-4484. Send the caller ID and callback number to phishing@irs.gov. Also, report unsolicited emails claiming to be from the IRS to phishing@irs.gov.

What other tips can I follow to stay vigilant against IRS impersonation scams?

Be cautious of unsolicited emails, texts, or social media requests for personal or financial info. Don't share sensitive info unless you've contacted a verified IRS rep first. Report any suspected scams to authorities to protect yourself and others.

Declan
Mobile Tech Expert
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