If the IRS Calls, Don’t Answer: Don’t Get Hooked by Common Scams

IRS won't call you. 497608/Pixabay

Every year, various types of scams make their appearance. Scammers successfully steal millions of dollars annually through cleverly designed efforts to fool the unaware. Since COVID-19, the IRS has sent out multiple warnings that scammers are more active than ever.

Recently, the IRS warned consumers to beware of three types of scams. If you’re waiting for a tax refund, watching for a stimulus check, or looking for a job, you'll want to avoid these scams.

Remember that some of these offers sound really good.  So good, that many people get pulled into them each year.

The Common Thread in Scams

Nearly all scams have the same premise, which will help you identify them. The agency (real or supposed) needs more personal information from you. Known as phishing scams, these official sounding phone calls, emails, letters or texts will try to dupe you into revealing information. That information can then be used to steal your hard-earned money.

A scammer’s communication will often contain a threat to get you to supply your personal information or make a payment of some kind. The scammer may threaten you by saying that you are facing court action or arrest.  They may say there is a problem with your social security.  They may indicate that your tax refund will be withheld, or a lien placed on your property, and you must pay today—over the phone. Or, they may say that they need more information to complete some form or tax matter.

Remember, the IRS won't call you. They will send you a letter if they need to contact you. ClassicVector/Shutterstock

Tips for Identifying Scams

Although IRS fraud scams come in different forms, two common techniques that scammers use are to leave a message on your voicemail or send an email. Either one will then ask you to either return the call or go to a website where you can supply the “necessary” or “missing” information.

A primary way to recognize these scams is that the IRS will never contact you with a phone call, a voicemail, or an email. It will always use a letter to first contact you when there is a problem with your taxes. You may be directed to their secure website—Identity Verification Service—for validation.

When you receive a phone call that sounds suspicious because the caller asks for personal information or bank account numbers—just hang up. Legitimate calls from the IRS will not operate in this manner.

If an email looks suspicious—do not open it. Opening it could cause malware to download automatically to your computer. When you see a link (which a scam email will have) you can hover your mouse cursor over the link to see where it might take you (the HTML address will appear in the lower-left corner of your computer screen). Do not click until you are sure it is a legitimate web address. If it is not legitimate, delete the email immediately.

Opening an email may also contain ransomware, which will lock up your data until you pay the scammer. If this happens, your computer will be rendered useless. Hopefully, you will have back-ups of your data, which can be used to restore your information.

Finding Out That You’ve Been Scammed.

If you should fall victim to an IRS scam and give personal information, you may provide enough information for someone to steal your identity. When scammers do this, the IRS says that you may become aware of it in one or more of the following ways:

1. The IRS sends a letter asking questions about a tax return you never filed.
2. When you try to file your taxes, the IRS reports a duplicate Social Security number.
3. You receive a tax transcript in the mail that you never asked for.
4. IRS records indicate you received wages for a company you never worked for.

In general, the IRS won't send you an email about your taxes. Shutterstock

Offer in Compromise (OIC) Tax Scams

One tax scam that has been growing in popularity is called the “offer in compromise” scam. When people have difficulty paying their taxes, the IRS offers a real program by this name. It enables some taxpayers to make payments or possibly even have their taxes reduced.

Some scammers take advantage of this legitimate IRS program by making phone calls claiming that they can help you settle your taxes for “pennies on the dollar.” Of course, they will tell you there is a limited time to take advantage of the offer. The scammer will also claim that you need their services to settle your tax debt.

The Lure of Job Offers on Social Media

While legitimate job offers do sometimes appear on social media, you need to be careful, as these offers are sometimes scams. Be cautious about what information you supply.

Real job offers provide details (not vague descriptions) about the job and its requirements, and will often give some general salary information. Indeed (a legitimate job site) warns that if a job offer requires a payment, offers extremely high pay, promises you will get wealthy fast, gives a vague job description, or has no contact information—it is not a real offer.

Stimulus Check Scams

Even though stimulus checks have been mailed, some people have not received the expected check—or may think another one is coming. Stimulus check fraud has brought in vast amounts of money to scammers.

If you think you were overlooked and want to investigate, go directly to the IRS website to learn more about your refund. Once again, do not open emails or respond to phone calls dealing with stimulus checks—they are not from the government.

In the event you did not receive your last stimulus check—or had it stolen from you after you received it, the IRS can perform a payment trace. Once you request it, and if the check was cashed, the IRS will send you a claim package that will include a copy of the cancelled check. You will fill out the information, return the package, and the IRS will review it. If your claim is verified, a new check will not be issued, but they may credit your account with the amount originally issued by filling out the 2021 Recovery Rebate Credit.

Be alert if a stranger asking for your details in a phone call or in an email. vickygharat/Pixabay

What to Do If You Have Been Scammed

If you sent in your tax forms, but someone already filed taxes in your name, the IRS will send you a 5071C letter (or a 5747C letter, a 6331C letter, or a 5447C letter). The letter will inform you that tax forms with your social security number have already been filed, or that the IRS needs more information to process your return. Instructions will be given in the letter telling you how to verify your identity so you can receive your tax refund.

Other Types of Scams to Watch For

The IRS lists several other types of scams on its website. From fake charities to tax preparers who overcharge, you will want to familiarize yourself with these scams as well. You could become a victim if you are unaware of how to identify them. You can report questionable tax-related material on the IRS website as well.

The Epoch Times Copyright © 2022 The views and opinions expressed are only those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.