IRS Warns of Continued Scams, Varied Tactics as the Tax Deadline Nears
IR-2016-62, April 13, 2016
WASHINGTON — The Internal Revenue Service today issued a warning that scammers may try using the April 18 tax deadline to prey on hard-working taxpayers by impersonating the IRS and others with fake phone calls and emails. Even after the tax deadline passes, taxpayers should know the telltale signs of a scam and tips to protect themselves from a variety of phone scams and phishing emails.
"We’ve seen continuing activity in these scams throughout the filing season," said IRS Commissioner John Koskinen. "As the tax deadline nears, these criminals may try and trick honest taxpayers over the phone or via email, and people should remain vigilant. After the tax deadline, watch out for these scammers promising a refund or threatening you with an unexpected tax bill."
These scam artists frequently masquerade as being from the IRS, a tax company and sometimes even a state revenue department. By email, they try enticing people to click on links in official-looking messages containing questions related to their "tax refund." Report these emails to firstname.lastname@example.org. By phone, many scammers use threats to intimidate and bully people into paying a "tax bill." They may even threaten to arrest, deport or revoke the driver’s license of their victim if they don’t get the money.
Variations of these scams can be seen nationwide, and it’s more important than ever to be cautious with providing personal or financial information. As part of the effort to protect taxpayers, the IRS has teamed up with state revenue departments and the tax industry to make sure taxpayers understand the dangers to their personal and financial data as part of the “Taxes. Security. Together” campaign.
Some examples of the varied tactics seen this year are:
Soliciting W-2 information from payroll and human resources professionals (see news release IR-2016-34)
“Verifying” tax return information over the phone (IR-2016-40)
Pretending to be from the tax preparation industry (IR-2016-28)
There are some important reminders for taxpayers nationwide about these schemes.
Watch Out for Threatening Phone Calls
Beware of scammers making unsolicited calls claiming to be IRS officials. They demand that the victim pay a bogus tax bill. They con the victim into sending cash, usually through a prepaid debit card or wire transfer. They may also leave “urgent” callback requests through phone “robo-calls,” or via a phishing email.
Scammers often alter caller ID numbers to make it look like the IRS or another agency is calling. The callers use IRS titles and fake badge numbers to appear legitimate. They may use the victim’s name, address and other personal information to make the call sound official.
The IRS Will Never:
Call to demand immediate payment over the phone, nor will the agency call about taxes owed without first having mailed you a bill.
Threaten to immediately bring in local police or other law-enforcement groups to have you arrested for not paying.
Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
Require you to use a specific payment method for your taxes, such as a prepaid debit card.
Ask for credit or debit card numbers over the phone.
If you get a phone call from someone claiming to be from the IRS and asking for money and you don’t owe taxes, here’s what you should do:
Do not give out any information. Hang up immediately.
Contact TIGTA to report the call. Use their “IRS Impersonation Scam Reporting” web page or call 800-366-4484.
Report it to the Federal Trade Commission. Use the “FTC Complaint Assistant” on FTC.gov. Please add “IRS Telephone Scam” in the notes.
If you think you might owe taxes, call the IRS directly at 1-800-829-1040.
Avoid Email Phishing Attempts
There has been a surge in email scams this year that appear to be from a tax agency or a tax software company.
Never reply to emails, texts or pop-up messages asking for your personal, tax or financial information. One common trick by criminals is to impersonate a business such as your financial institution, tax software provider or the IRS, asking you to update your account and providing a link. For small business, these schemes may try impersonating a company leader and request payroll and human resource information for employees in your company. Never click on links even if they seem to be from organizations you trust. Go directly to the organization’s website.
And if it sounds too good to be true, it probably is. If you see an email that says "You won a free cruise" or "The IRS has a refund waiting for you," odds are high that it is a phishing attempt looking to get your personal information.
If you get a phishing email, remember this important advice:
Don’t reply to the message.
Don’t give out your personal or financial information.
Forward the email to email@example.com. Then delete it.
Don’t open any attachments or click on any links. They may have malicious code that will infect your computer.
More information on how to report phishing or phone scams is available on IRS.gov.
Fact sheet FS-2016-1, IRS, States and Tax Industry Combat Identity Theft and Refund Fraud on Many Fronts
FS-2016-2, IRS, States and Tax Industry Urge Taxpayers to Join the Effort to Combat Identity Theft
FS-2016-3, IRS Identity Theft Victim Assistance: How It Works
FS-2016-4, How New Identity Security Changes May Affect Taxpayers for 2016
National Tax Security Awareness Week: Eight Steps to Keep Online Data Safe
During the holiday shopping season, shoppers are looking for the perfect gifts. At the same time, criminals are looking for sensitive data. This data includes credit card numbers, financial accounts and Social Security numbers. Cybercriminals can use this information to file a fraudulent tax return.
This tip is part of National Tax Security Awareness Week. The IRS is partnering with state tax agencies, the tax industry and groups across the country to remind people about the importance of data protection.
Anyone with an online presence can do a few simple things to protect their identity and personal information. Following these eight steps can also help taxpayers protect their tax return and refund in 2018:
Shop at familiar online retailers. Generally, sites with an “s” in “https” at the start of the URL are secure. Users can also look for the “lock” icon in your browser’s URL bar. That said, some criminals may get a security certificate, so the “s” may not always mean a site is legitimate.
- Avoid unprotected Wi-Fi. Users should not do online financial transactions when using unprotected public Wi-Fi. Unprotected public Wi-Fi hotspots may allow thieves to view transactions.
- Learn to recognize and avoid phishing emails that pose as a trusted source. These emails can come from a source that looks like a legitimate bank or even the IRS. These emails may include a link that takes the user to a fake website. From there, the thieves can steal usernames and passwords.
- Keep a clean machine. This includes computers, phones and tablets. Users should install security software to protect against malware that may steal data. This software also protects against viruses that may damage files.
- Use passwords that are strong, long and unique. Experts suggest a minimum of 10 characters. Use a combination of letters, numbers and special characters. Use a different password for each account.
- Use multi-factor authentication when available. Some financial institutions, email providers and social media sites allow users to set their accounts for multi-factor authentication. This means users may need a security code, usually sent as a text to their mobile phone, in addition to a username and password.
- Sign up for account alerts. Some financial institutions will send email or text alerts to an account holder when there is a withdrawal or change to their accounts. Generally, people can check their account profile to see what added protections may be available.
- Encrypt sensitive data and protect it with a password. People who keep financial records, tax returns or any personal information on their computer should protect this data. Users should also back up important data to an external source. When disposing of a computer, mobile phone or tablet, people should make sure they wipe the hard drive of all information before trashing.