Although it is always smart to be aware and keep watch for potential scams, whether via phone or email, this time of year can be especially perilous. Tax season often sees a rise in scamming activity as many scammers understand the heightened pressure taxpayers feel regarding money and taxes. The IRS has released a warning about a recent phone scam related to their agency. The warning noted that taxpayers are receiving calls from individuals claiming to be the IRS, demanding instant payment for taxes via credit, debit or wire transfer.

The Treasury Inspector General for Tax Administration (TIGTA) has received around 90,000 complaints from taxpayers saying they received a very hostile call from the IRS insisting that they owe taxes and, in many cases, threatening individuals with jail time, suspension of a driver’s or business license or even deportation, if taxes were not paid immediately. The TIGTA has estimated that, at this point, around $5 million has been stolen from approximately 1,100 individuals, believing it may be the “largest scam of its kind.” Below are several common messages the IRS has identified from these scammers, as well as reminders of how the IRS will interact with taxpayers.

Common Characteristics

• Scammers may attempt to mimic a call center, so individuals may hear background noise of other calls being made.
• Scammers may imitate the IRS customer service number on caller ID to convince individuals it really is the IRS.
• Scammers may send fake IRS emails as well to support their counterfeit calls.
• Scammers may be able to recite the last 4 digits of an individual’s SSN.
• Scammers will usually be hostile and threatening, even going so far as to call back pretending to be local police or the DMV to convince individuals of potential jail time or license suspension (and again faking the number for caller ID).

IRS Common Practices

• The IRS never requests immediate payment over the phone and taxpayers will be notified of any enforcement action through the mail, not by phone.
• If taxes are owed, the IRS will always contact individuals by mail first, never phone or email.
• A particular payment method is never required to pay taxes, and the IRS will not ask for a specific method to be used.
• The IRS does not ask for specific card information, PINS or passwords over the phone.

If you believe you are being scammed, the IRS encourages taxpayers to never give out personal, financial  or business information and immediately hang up the phone. Individuals are also encouraged to call the IRS or TIGTA to file an official report of the scam. Email is also another way scammers can contact and individuals should never open attachments on emails from suspect sources, and either delete the email immediately or forward it to the IRS phishing email.