The information in this article is up to date for tax year 2024 (returns filed in 2025).
With the tax season in full swing, it’s prime time for scammers to try to steal your money and your personal information. Thousands of people have fallen for tax scams and lost millions of dollars in the process. Often criminals impersonate agents to trick you into paying for taxes or fees you don’t really owe. Common tax scams, such as IRS phone scams, are one of the many types of scams taxpayers should be aware of. Let us show you the warning signs of an IRS phone scam so you don’t fall into the trap.
Understanding and Recognizing IRS Phone Scams
IRS phone scams are a type of tax scam where fraudsters impersonate the Internal Revenue Service (IRS) to trick taxpayers into handing over personal or financial information or money. These scams can be particularly convincing, as scammers may use fake IRS logos, threaten arrest or deportation, or claim that you owe back taxes. To recognize an IRS phone scam, be aware of the following warning signs:
- The caller demands immediate payment or threatens to arrest or deport you if you don’t pay.
- The caller asks for personal or financial information, such as your Social Security number or bank account information.
- The caller requests payment via a prepaid debit card, gift card, or wire transfer.
- The caller claims that you owe back taxes or penalties, but you have no record of owing any taxes.
By understanding these tactics, you can better protect yourself from falling victim to an IRS phone scam.
How Do the Scams Work?
There are numerous tactics criminals use to scam you out of your money. Usually, they’ll tell you about a bogus tax bill and demand that you pay immediately to avoid dire consequences. However, there are other variations of the scam. You may receive a robocall threatening to cancel or suspend your Social Security number. Other times, IRS impersonators will claim they received your tax return and need to verify some information before it can be processed. The IRS does not initiate contact through emails, texts, or social media to request personal information. Any details you provide will be stolen. Keep your data safe—file your taxes securely with ezTaxReturn.
Easy Ways to Recognize Tax Scams
They Call, Text or Contact You on Social Media First
Received a text message from the IRS about an unpaid tax bill? It’s highly unlikely! The IRS is very old school. Generally, when you owe taxes, their first course of action is to mail a bill to your home address. They will not request personal or financial information over the phone, email, or social media.
You Aren’t Given a Chance to Appeal the Amount Owed
Is the caller demanding you to make an immediate payment? That is a huge red flag that something isn’t right. If you receive a notice from the IRS and don’t agree with their findings, you’re given a chance to ask questions or appeal the amount owed. Your notice will even provide specific instructions for handling the situation.
It’s Required That You Pay Using a Specific Method
Once you hear that you must pay using a specific method such as a prepaid debit card, gift card, or wire transfer, just know it’s a scam. The real IRS does not request information related to financial accounts through these methods and does not accept them for tax payments.
They Threaten Arrest or Deportation, or Your License Revoked
Scammers know people will do almost anything when they’re scared. That’s why they threaten to have you arrested, deported, or your license revoked unless you pay them right away. They may also try to obtain your personal, financial, or employment information through these threats. Anyone can be scammed, but fraudsters tend to target seniors and recent immigrants because they have limited access to information. Let’s be clear, the IRS will not threaten you or demand immediate payment. If you have any questions or concerns, you can call the IRS at 800-829-1040.
How to Verify the Caller’s Identity
If you receive a call from someone claiming to be from the IRS, it’s essential to verify their identity before providing any information or making a payment. Here are some steps you can take:
- Ask for the caller’s name, badge number, and phone number.
- Tell the caller that you want to verify their identity and ask them to call you back at a later time.
- Check the IRS website (irs.gov) to see if the caller’s name and badge number match any legitimate IRS employees.
- Contact the IRS directly to confirm whether the caller is a legitimate IRS employee.
Taking these steps can help you ensure that you are dealing with a genuine IRS representative and not a scammer.
Common Tactics Used by Scammers
Scammers use various tactics to trick taxpayers into giving away personal or financial information or money. Some common tactics include:
- Phishing scams: Scammers send emails or texts that appear to be from the IRS, asking for sensitive information.
- Phone scams: Scammers call and claim to be from the IRS, asking for sensitive information or money.
- Identity theft scams: Scammers steal your identity and file a fake tax return in your name.
- Tax preparation scams: Scammers offer to prepare your tax return for a fee, but may steal your information.
By being aware of these common tactics, you can better protect your personal and financial information from scammers.
Protecting Yourself from IRS Phone Scams
To protect yourself from IRS phone scams, follow these tips:
- Be cautious of unsolicited calls, emails, or messages that claim to be from the IRS.
- Never provide personal or financial information over the phone or via email.
- Don’t pay any taxes or fees via prepaid debit card, gift card, or wire transfer.
- Verify the caller’s identity before providing any information or making a payment.
- Report any suspicious calls or emails to the IRS and the Federal Trade Commission (FTC).
By being vigilant and taking these precautions, you can protect yourself from IRS phone scams and avoid falling victim to tax scams and fraud. Protect your information and file your taxes safely with ezTaxReturn.
How to Report the Fraudulent Call
If you know for a fact that you don’t owe any taxes, here are the steps you need to take. Recognizing tax scam warning signs is crucial when reporting a fraudulent call.
- Don’t entertain the caller just hang up.
- Inform the Treasury Inspector General for Tax Administration (TIGTA).
Protect yourself from getting scammed by filing your taxes securely with ezTaxReturn. We use the latest encryption technology to safeguard your personal information, ensuring a safe and hassle-free tax filing experience. Trust ezTaxReturn to file your taxes with confidence and security—start today!
The articles and content published on this blog are provided for informational purposes only. The information presented is not intended to be, and should not be taken as, legal, financial, or professional advice. Readers are advised to seek appropriate professional guidance and conduct their own due diligence before making any decisions based on the information provided.
