The IRS Phone Scam: Does the IRS Call You?
With impersonations at a record high, you may have already encountered an IRS phone scam from an impersonator via phone, text, or other means. Each day, scammers use more and more advanced tactics to trick taxpayers into giving away personal information and money.
In fact, IRS phone scams is on the IRS’ Dirty Dozen list of the most common scams. As of February, 2017, over 10,000 victims have paid in excess of $54 Million to the scammers. That’s an average of $5,400 per individual.
Luckily, the IRS adheres to the following protocols and modes of communication – which allows taxpayers to better identify an IRS representative from a fraudster.
Fact 1: The IRS Never Initiates Contact Via Phone
The IRS initiates most contacts through regular mail delivered by the United States Postal Service.
Fact 2: The IRS Will Not Ask Certain Things Over the Phone
The IRS behaves in predicted ways. In fact, the IRS will never call you and…
- Ask for personal information, like your Social Security number, credit card or bank routing numbers, or other personal information.
- Inquire about taxes owed without first having mailed you a bill.
- Ask for an immediate tax payment over the phone. Typically, the IRS will first mail a bill to any taxpayer who owes taxes.
- Demand that you owe a certain amount of money in delinquent taxes, without the opportunity to appeal. (Remember: you have certain rights as a taxpayer.)
- Threaten to bring in local police or other law enforcement groups to have you arrested for not paying.
Fact 3: Special Circumstances of Phone Calls Do Arise
There are special circumstances where the IRS will call or visit your home or business. Instances where this may be the case are if:
- You have an overdue tax bill
- You have a delinquent tax return
- You have a delinquent employment tax payment
- If you are under criminal investigation for tax fraud
- You are being audited
Even so, you will receive IRS notices in the mail prior to the call or visit.
What Actions Can You Take?
So, if you find yourself in a situation where you believe someone is impersonating the IRS to obtain your personal information, hang up the phone then take the following actions:
- Leverage Tax Identity Shield® by H&R Block – our agents can help members identify next steps to take.
- Report the incident to the following:
It is always wise to select a qualified and trustworthy Tax Professional who can help answer questions about contact with the IRS and assist you. A quality advisor can spot a fraudulent call and help you take the appropriate action.
The IRS reduces or takes refunds (called refund offsets) for many reasons. If you received an IRS notice about a refund offset, learn what to do next.
Can you receive an exemption if you make an early 401k withdrawal due to hardship? The answer may surprise you. Get tax answers at H&R Block.
Learn more about notice CP503, why you received it, and how to handle an IRS bill for unpaid tax with help from the tax experts at H&R Block.
If you claim more allowances than you actually have on your w-4, will it makes a large difference in the taxes you owe? Learn more from the tax expert