IRS Back Taxes Scam Call Steals Millions: What You Should Know

Worried person on phone with scammer in background

A new wave of IRS back taxes scam calls has stolen millions of dollars from unsuspecting victims. The Federal Trade Commission (FTC) estimates that IRS imposters have stolen nearly five million dollars in the last five years. These scammers are becoming more sophisticated, targeting individuals with personalized information to make their schemes more convincing.

Key Takeaways

  • IRS imposters have stolen nearly five million dollars in the last five years.
  • Scammers use personalized information to make their schemes more convincing.
  • The IRS will never call you to demand immediate payment.
  • Report scam calls to the Treasury Inspector General for Tax Administration (TIGTA).

How the Scam Works

Scammers posing as IRS agents call individuals, claiming they owe back taxes that must be paid immediately through wire transfer or gift card. These fake agents often have bogus credentials and may even know personal details about their targets. They manipulate caller ID to make it appear as though the IRS is calling.

If the victim does not comply, the scammers may become aggressive, threatening to arrest or deport the individual, or suspend their business or driver’s license. They use high-pressure tactics to coerce victims into handing over personal information or money.

Who Is Targeted?

Scammers often target individuals with specific vulnerabilities, such as:

  • Hearing or vision impairments
  • Non-native English speakers
  • Cognitive issues associated with older age

For example, a scammer may use a video relay service to appear more legitimate to someone who is hard of hearing. They may also call non-native English speakers in their native language and threaten them with police action.

How to Protect Yourself

To avoid falling victim to these scams, it’s crucial to know what the IRS will never do:

  • Call for payment without first mailing a letter
  • Ask for payment via email or demand immediate payment through gift card or wire transfer
  • Threaten to arrest you or involve the police
  • Deny you the opportunity to appeal your case
  • Request credit or debit card information over the phone
  • Leave an urgent callback message unexpectedly

What to Do If You Owe Back Taxes

If you believe you owe back taxes, follow these steps to verify and pay your debt:

  1. Visit your online IRS account to view your balance.
  2. Check your tax account for the relevant years.
  3. Review any tax records on file.

For more information on paying the IRS, consult their official guidelines.

How to Report Scam Calls

If you receive a scam call, report it to the Treasury Inspector General for Tax Administration (TIGTA). You can also file a complaint with the Federal Communications Commission (FCC) or the Federal Trade Commission (FTC).

Stay Vigilant

Remain cautious and informed to protect yourself from these scams. If you fall victim to a scam, contact the IRS immediately. For those unsure about their tax status, consulting a tax attorney or trusted tax professional is advisable. The IRS also offers free tax counseling services through the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs.

Sources

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