The IRS Will Never Call You Out Of The Blue (& Other Scams To Watch Out For)

January 30, 2019

In order to avoid becoming a victim of scammers, it’s more important than ever to be aware of a few rules that the IRS follows so that you know when you can ignore calls or letters.

That’s not the IRS demanding payment via gift card

One of the more lucrative scams for criminals in recent times has been to prey on people who are already afraid of the IRS or the government, particularly elderly citizens or immigrants who may fear random deportation. They call and demand immediate payment via gift card such as Google Play or iTunes, threatening arrest if you don’t comply.

Here’s the thing to know: the IRS will NEVER initiate contact with you via email or phone. They always start their tax collection process via mail. If the IRS is calling you, it’s because you’ve either requested a call via written correspondence or you haven’t been paying attention to the mail they’re sending you. And they’ll never ask for a gift card, that’s not an acceptable way to pay your taxes.

It’s time to stop fearing the IRS

As a CPA, I’m required to complete an average of 40 hours per year of continuing education, so I’ve had the opportunity to attend a few seminars presented by IRS agents. I’ve learned a ton of technical stuff, but there are some key take-aways that I wish I could scream from a mountain top for all to hear:

• The IRS is very slow and prefers to correspond with taxpayers via US Mail – this plays to our advantage as taxpayers because we have everything in writing.
• No one ever went to jail over their taxes who wasn’t expecting it – even Willie Nelson knew he wasn’t paying his taxes, he just chose to ignore it. Making a mistake on your return will not suddenly escalate to being arrested unless you respond to the IRS with some type of threat (not a good idea).
• The IRS always gives you a chance to appeal any tax they levy against you – those notices you receive for underpayment are based on information they likely received from another source, but that doesn’t mean it’s correct and they know that. This is why keeping good records is so important.
• You can call the IRS to pay your taxes via credit card, but they will not call you to demand that information. If someone is asking you for a credit or debit card number, they are NOT representing the IRS. Hang up and report the call.
• The IRS will not ask you to verify or provide information via email – that’s a scam. If you receive such an email, forward it to [email protected] then delete it.

What if you think you might owe taxes and you get a call or email?

If you think there may be a reason that the IRS is trying to contact you, the same information above applies, but here are a few other steps to take to ensure it’s truly the IRS reaching out to you and not a scammer:

• Don’t answer calls from numbers you don’t know. If it’s truly the IRS, they will leave you a message with a number to call back, and they WON’T be threatening.
• To verify that it really is the IRS trying to contact you, follow these steps, which are copied directly from this website:
  • Go to IRS.gov and search on the letter, notice, or form number. Please be aware fraudsters often modify legitimate IRS letters and forms. You can also find information at Understanding Your Notice or Letter or by searching Forms and Instructions. For additional information please see “How to know it’s really the IRS calling or knocking on your door”. If it is legitimate, you’ll find instructions on how to respond. If the completion of a form is required and it’s provided by a questionable contact, you should verify the form is identical to the same form on IRS.gov by searching Forms and Instructions. If you don’t find information on our website or the instructions are different from what you were told to do in the letter, notice or form, please use the appropriate online resources. Once you have determined that it is not legitimate, report the incident to TIGTA and to us at [email protected].

The bottom line – don’t be a victim

The most important thing to know from the above is that the IRS is never going to irately demand via phone that you resolve an incident immediately, nor will they threaten arrest or other action if you don’t immediately comply. So if someone is doing these things, hang up, close the door, delete the email – it’s a scam.