After April 15, criminals impersonating IRS agents ramp up their efforts to trick unsuspecting taxpayers into sending them money for taxes or penalties that they don't actually owe, or coerce them into sharing extremely sensitive personal information. You can reduce your risk of becoming a victim by staying alert and knowing what to watch for.
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 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, birthdate or bank account numbers — 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.
Avoid it: Check the “From” name before clicking any link in an email. Scammers will change their names to look like the emails are coming from the IRS or another legitimate agency. If you hover over or click on the name, it will reveal their actual email address…and if it is not from an address that ends 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 caller stresses “urgency” and demands a prepaid debit card, wire transfer or a credit card number for immediate payment. If the target doesn’t comply, the caller threatens to arrest the person, or even take away their driver’s license, ruin their credit score or shut down their business.
Avoid it: Be aware when the IRS contacts people about unpaid taxes, they do it by postal mail, not by phone. Additionally, the IRS doesn’t 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, contact the Federal Trade Commission via the “FTC Complaint Assistant” on FTC.gov. (Add "IRS Telephone Scam" as your email subject line.)
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 knocks on your door and hands you an official-looking envelope that appears to be from the IRS. The letter inside says that you're 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.”
Avoid it: These phony letters are designed to lure you into sharing sensitive personal information that will be used for identity theft or tax fraud. Like many scams, the letter will include contact information and a phone number that do not belong to any office at the IRS. Other red flags include awkwardly-worded sentences, misspellings, improper punctuation, strange fonts, and outdated or wrong tax information and filing deadlines. If you receive a suspicious letter, do not contact the number on the letter. Instead, report the potential scam to phishing@irs.gov.
The IRS publishes a list of the “worst of the worst” tax-related scams every year. Check out the IRS Dirty Dozen list, because being informed is always your best protection. Remember: if it seems to good to be true, it probably is. If you're not sure whether a communication from the IRS is real, try directly contacting the agency on your own at 800-829-1040.
Questions? Contact David Toll, senior associate vice president for Gift Planning, at (215) 895-1882 or giftplanning@drexel.edu.