Tips to Identify Federal Tax Scams

Scams with callers claiming to be from the IRS have become unfortunately common. These scams typically demand immediate payment of a supposed tax debt, and threaten severe consequences, and often jail time, if payment isn’t made. Even if a person does not fall for the scam and make payment, receiving the call can cause anxiety or cause wasted time determining if the demand is legitimate.

Some knowledge of IRS procedures for collecting unpaid taxes can help determine if someone is being contacted by a con artist or the IRS.

When the IRS is seeking to collect unpaid taxes, it communicates in written correspondence. In that correspondence, at least in the early stages, the person will be informed of his or her rights to appeal or otherwise contest the alleged tax liability, and the ability to seek installment payments or an offer in compromise if you are unable to pay.

Things the IRS does not do and are therefore a sign that the person making contact is a con artist include:

  • Threaten arrest for failure to pay;
  • Request payment by phone;
  • Require payment by a prepaid debit card;
  • Initiate correspondence by email, text message or social media; and/or
  • Request credit or debit card numbers over the phone.

If a person is still concerned he or she may have unpaid taxes, it can be verified by calling the IRS at 1-800-829-1040 .

If a person is contacted as a part of a scam, he or she can report the scam by contacting the Treasury Inspector General for Tax Administration at 1-800-366-4484 or at their website at www.tigtra.gov.