ABOUT a dozen of my clients have complained of receiving threatening phone calls from the “IRS” to pay up or be subject to criminal investigation. This is a problem for us taxpaying folks. And it’s growing.
The IRS renewed its warning about an emerging phone scam that continues to target people across the nation, especially recent immigrants. Thieves pose as the IRS and make unsolicited calls to their targets. The caller tells victims that they owe taxes to the IRS. They demand that victims pay immediately with a pre-loaded debit card or wire transfer. They threaten victims with arrest, deportation, or suspension of driver’s license. If they don’t get what they want, they become hostile and insulting.
How Telephone Scammers Work:
• Scammers use fake names and IRS badge numbers.
• They use common names and surnames to identify themselves.
• Scammers recite the last four digits of your Social Security Number.
• They rig caller ID to falsely show that the call is from the IRS.
• Callers will tell you that you owe taxes and demand immediate payment.
• They tell you that you must pay the bogus tax bill with a pre-loaded debit card or wire transfer.
• The callers are often abusive and threaten arrest or deportation.
• If you don’t answer, they often leave an “urgent” callback request.
• Scammers follow up with emails to support their prior bogus calls.
• Victims hear background noise of other calls being conducted to mimic a call site.
• After threatening victims with jail time or driver’s license revocation, scammers hang up.
• Others soon call back pretending to be from the local police or DMV.
Many unsuspecting taxpayers have fallen for these tactics. The Treasury Inspector General for Tax Administration has received about 100,000 complaints about these scams. Thieves have stolen an estimated $5 million from about 1,100 victims as of mid -year. There will be a lot more. You could be one of them if you are not prepared to react when a scammer calls.
What to Do If You Get a Phone Call from Someone Claiming To Be the IRS:
• Ask for a call back number and an employee badge number.
• If you think you may owe taxes, call the IRS at 800-829-1040 (be prepared for a long wait).
• If you don’t owe taxes or have no reason to think that you do, call the Treasury Inspector General for Tax Administration at 800-366-4484 to report the incident.
• Report it to the Federal Trade Commission by using their “FTC Complaint Assistant” on FTC.gov and add “IRS Telephone Scam” to the comments of your complaint.
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Victor Santos Sy, CPA, MBA, provides professional services in accounting and tax controversy including IRS audit defense and offers in compromise. He also advises clients on choices of entity including corporations for small businesses and LLCs for rentals. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation at 704 Mira Monte Place, Pasadena, CA 91101. The firm celebrates its 35th anniversary this year. You may email tax questions to Vic at [email protected]. You are welcome to visit our website for more than 300 tax tips at www.victorsycpa.com.