In recent years, IRS imposters have become increasingly adept at deceiving taxpayers, resulting in nearly $5 million in losses, according to the Federal Trade Commission (FTC). These scammers are honing their tactics and targeting vulnerable people, making it crucial for everyone to stay vigilant. Here’s what you need to know to protect yourself from becoming a victim.
The Latest Scam: IRS Impostor Calls
One of the latest and most concerning IRS scams involves callers who claim to be from the IRS and insist that the victim owes back taxes. These fraudsters often use advanced tactics to sound convincing. They might have access to personal information, making their threats seem more credible. Here’s how this scam typically works:
- The Call: The scammer will call, claiming to be from the IRS, and assert that the victim owes back taxes. The scammer’s name and credentials will be fake.
- The Threat: They pressure the victim to pay immediately, often using threats of arrest or legal action if payment is not made.
- The Payment Request: Payment is demanded through untraceable methods such as wire transfers or gift cards, which are difficult to recover once sent.
Who Are the Scammers Targeting?
Scam artists often prey on specific groups who may be less aware of IRS procedures or more susceptible to high-pressure tactics. Typical targets include:
- Elderly Individuals: Seniors are frequently targeted due to potential isolation and lack of familiarity with modern technology.
- Hearing or Vision Impaired: Those with sensory impairments may struggle to verify the legitimacy of communications.
- People with Cognitive Issues: Cognitive impairments can make it difficult to discern legitimate communications from fraudulent ones.
- Individuals Not Fluent in English: Individuals who speak English as a second language might find it more difficult to understand IRS protocols and detect scam indicators.
How to Protect Yourself
To safeguard against IRS impostor scams, follow these tips:
- Understand IRS Procedures: The IRS will never demand payment via phone call or require payment through gift cards or wire transfers. When issues arise, their first contact with taxpayers is typically through official correspondence via mail.
- Verify Caller Identity: If you receive a call claiming to be from the IRS, hang up and contact the IRS directly using their official phone number, which you can find on their website. This will help you confirm whether the call was legitimate.
- Do Not Share Personal Information: Be cautious about providing any personal or financial information over the phone. Legitimate IRS representatives will never ask for sensitive details through unsolicited calls.
- Report Suspicious Activity: If you believe you’ve been targeted by a scammer, report it to the Federal Trade Commission (FTC) and the IRS. The FTC’s website offers a place to report such incidents and can help authorities track down fraudsters.
- Educate Vulnerable Individuals: If you know someone who fits the typical profile of scam victims, such as an elderly family member, make sure they are aware of these scams and know how to verify any communication they receive.
The Best Way to Address Back Taxes
If you genuinely owe back taxes, it’s crucial to handle the situation properly:
- Do Not Use Untraceable Methods: Avoid paying with gift cards or wire transfers. The IRS accepts payments through their secure online payment portal or by check.
- Seek Professional Advice: Consult a tax professional if you’re unsure about your tax situation. They can provide guidance on resolving tax debts and navigating the complexities of tax law.
- Set Up Payment Plans: The IRS offers payment plans for those who cannot pay their taxes in full. Contact them directly to discuss your options and set up a manageable payment plan.
Staying informed and cautious is your best defense against IRS impostor scams. Understanding how these scammers operate and knowing the proper channels for addressing tax issues can protect you and others from falling victim to these sophisticated frauds.
