Warning about IRS Tax Scams

If there’s one thing you can count on scammers to take advantage of, it’s a global catastrophe. Any time there is an emergency, natural disaster, or common threat, scammers leap into action to attempt to rip your good intentions right out of your hands and away from the people who really need it.

The same is true whenever tax season rolls around. And in light of the recent pandemic and the introduction of stimulus checks, people tend to be just a bit more relaxed on potential dealings with the IRS.

Fortunately, there are immediate red flags that, once educated on them, you can tell the difference between legitimate IRS communication and a tax scam.

Know the Signs

First and foremost, the IRS is very selective and strict in how it communicates with you. Very seldom will you receive a phone call from the IRS, although there are exceptions to this rule. The IRS prefers to communicate via standard mail.

As such, you will receive official notices if you owe money. Only when several notices go unanswered might you get a call or personal visit from the IRS.

Moreover, the IRS will not call you demanding the immediate payment of your debt through unorthodox means, such as a gift card, prepaid debit card, or a wire transfer. Instead, the IRS will mail you a bill for any taxes that you owe, often with information about payment plan options.

Additionally, even if you owe taxes, the IRS gives you a chance to appeal what they claim you owe. Your letter detailing your right to appeal should also come with information explaining your taxpayer rights.

If you are ever threatened by someone claiming to be from the IRS, odds are you are being scammed. The IRS doesn’t make threats to involve the police or immigration officers, nor will they ever threaten you with an arrest.

IRS tax scammers are quite successful with such threats, so it is important that you don’t allow yourself to fall for them.

What if You Do Owe Taxes?

If you receive an official letter from the IRS stating that you owe taxes, you will find instructions explaining to send any and all payments to the United States Treasury.

Are you afraid you are the victim of an IRS tax scam? Contact a trusted Certified Public Accountant in your area for assistance on how to move forward.