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 email@example.com. 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 firstname.lastname@example.org. 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
All taxpayers should plan ahead for natural disasters
Floods, wildfires, hurricanes, tornados and other natural disasters happen quickly and often with little warning. No one can prevent these disasters from happening, but people can prepare for them.
Here are some things taxpayers can do to help protect their financial safety should a disaster occur. Taxpayers should:
Update emergency plans.
A disaster can strike any time. Personal and business situations are constantly evolving, so taxpayers should review their emergency plans annually.
Create electronic copies of documents.
Taxpayers should keep documents in a safe place. This includes bank statements, tax returns and insurance policies. This is especially easy now since many financial institutions provide statements and documents electronically. If original documents are available only on paper, taxpayers should scan them. They should save them on a DVD or CD, or store them in the cloud.
Document valuables. It’s a good idea to photograph or videotape the contents of any home. This is especially true when it comes to items of value. Documenting these items ahead of time makes it easier to claim insurance and tax benefits if a disaster strikes. The IRS has a disaster loss workbook. Using this can help taxpayers compile a room-by-room list of belongings.
Remember the IRS is ready to help. In the case of a federally declared disaster, affected taxpayers can call the IRS at 866-562-5227. The taxpayer can speak with an IRS specialist trained to handle disaster-related issues. Taxpayers can request copies of previously filed tax returns and attachments by filing Form 4506. They can also order transcripts showing most line items through Get Transcript on IRS.gov. They can also call 800-908-9946 for transcripts.
Know what tax relief is available in disaster situations
Taxpayers should be aware that the Tax Cuts and Jobs Acts modified the itemized deduction for casualty and theft losses. After Dec. 31, 2017, net personal casualty and theft losses are deductible only to the extent they’re attributable to a federally declared disaster. Claims must include the FEMA code assigned to the disaster.