TAX SCAMS

As tax professionals, we need to be prepared to answer our client’s questions and help protect them

against swindlers who are trying to steal their money and, in some cases, their identity. 

Since there is no end to the proliferation of identity theft, the IRS continues to warn the public 

to be vigilant. Scammers often call taxpayers and claim to be with the IRS. They even have the ability 

to manipulate caller ID to make it appear the call is originating from an IRS service center. These 

criminals often demand money for unpaid taxes. Some may try to lure the taxpayer into providing bank 

account numbers or other private financial information with the promise of a refund. These con artists can sound 

incredibly convincing when they call. They may know a lot about the taxpayer and even use fake 

names and bogus IRS badge numbers. If the phone call goes unanswered, the scammers often 

leave an urgent callback request. Sometimes they use scare tactics by threatening to freeze bank 

accounts, apply liens to property, or even send the local police to arrest the taxpayer. 

Taxpayers should know when a supposed IRS caller is a fake. Here are five tactics the scammers 

often use: 

• Call to demand immediate payment. The IRS will not call 

about taxes you owe without first mailing you a bill. 

• Demand that you pay taxes without giving you the chance 

to question or appeal the amount they say you owe. 

• Require you to use a certain payment method for your taxes, 

such as a prepaid debit card. 

• Ask for credit or debit card numbers over the phone. 

• Threaten to bring in local police or other law enforcement to 

have you arrested for not paying. 

The IRS never uses these tactics. Individuals who receive a phone call from someone claiming to be from 

the IRS and asking for money should: 

• Call the IRS at 800.829.1040 to talk about payment options

if they know they owe taxes or think they might owe. Taxpayers 

also may be able to set up a payment plan online at IRS.gov. 

• Report the incident to TIGTA at tigta.gov or 800.366.4484 

if they’re certain they don’t owe taxes or have no reason to believe that they do. 

• Contact the Federal Trade Commission at FTC.gov and 

use the “FTC Complaint Assistant” to report the 

scam. The Commission asks individuals to add “IRS 

Telephone Scam” to the comments of their complaint.

Remember, the IRS currently does not use unsolicited email, text messages or any social media 

to discuss personal tax issues. For more information on reporting tax scams, go to irs.gov and type 

“scam” in the search box. n 

Info provided by: N.A.T.P. & John Cahill