Watch for it: Phishing emails. “Phishing” is a type of scam email designed to steal your personal information. Scammers will send you an email pretending to be from the IRS, using urgent subject lines and demanding updates to important tax forms. If you click on the link they send you, you’ll end up on a page that might look like the IRS website, but it is not. Any information you share – your social security number, bank account numbers or birthdate — can be used by a scammer to empty your accounts, open credit cards in your name or even file an amendment to a phony tax return.
What to do: Check the “From” name before clicking any link in an email. Scammers will change their names to imitate the IRS or another legitimate agency. If you hover over or click on the name, you will be able to see their actual email address. If the email address does not end in “.gov,” it’s a scam. Forward any email messages that claim to be from the IRS to phishing@irs.gov.
Watch for it: Telephone calls stating that you made an error on your tax return and owe money to the IRS. The scammer will stress “urgency” and demand a prepaid debit card, wire transfer or credit card number for immediate payment. If the target doesn’t comply, the caller will threaten to take away your driver’s license, ruin your credit score, shut down your business or even arrest you.
What to do: Know that the IRS contacts people about unpaid taxes by postal mail, not by phone. Additionally, the IRS does not accept prepaid debit cards or wire transfers for payment, nor will they ask for credit card numbers. Don’t be surprised if you quickly receive a second phone call from the same scammer, claiming to be a representative from the police or Department of Motor Vehicles and repeating the same empty threats. Handle all of these calls the same way: hang up. Then, report the scam to the Federal Trade Commission by visiting ftc.gov/complaint and selecting “Report Now.”
Watch for it: A hand-delivered letter saying that you are entitled to an “unclaimed refund.” The IRS is warning taxpayers about a new scam that uses old-school tactics to target senior citizens. Someone who looks like a delivery person will knock on your door and hand you an official-looking envelope that appears to be from the IRS. The letter inside says that you are due an unclaimed tax refund. Of course, to collect it, you'll just need to send a photo of your driver's license and confirmation of your bank routing numbers, social security number, cell phone number and more – all in an email to an “IRS agent.” These phony letters are designed to lure you into sharing sensitive personal information that will be used for identity theft or tax fraud.
What to do: Be on the lookout for suspicious contact information and irregular language. Like many scams, the letter will include an email or phone number that does not belong to any office at the IRS. Other red flags include awkwardly worded sentences, improper punctuation, strange fonts, misspellings and outdated or incorrect tax information and filing deadlines. If you receive a suspicious letter, do not contact the number on the letter. Instead, report the scam to the Federal Trade Commission by visiting ftc.gov/complaint and selecting “Report Now.”
Being informed is your best protection against scams. Stay up to date on the IRS Dirty Dozen, the IRS’s annual list of the “worst of the worst” tax-related scams. And remember: if it seems too good to be true, it probably is. If you are not confident that a communication from the IRS is real, always contact the agency directly at 800.829.1040.
Questions? Contact David Toll, senior associate vice president in Drexel's Office of Gift Planning, at 215.895.1882 or giftplanning@drexel.edu.