Tis the Season for IRS Scams
It’s that time of year when IRS tax return and refund scams arrive, and there’s nothing festive about that.
During and after tax deadline season, many cybercriminals try to take advantage of taxpayers through scams claiming you will lose your refund, or that the IRS will take action against you if you do not follow a set of specific payment instructions. Often these scams come in the form of an email that will ask you to open a link or an attachment, which will take you to a fake website that asks for your personal identification information such as a social security number, bank account or credit card number.
These links or attachments also often contain malware that once downloaded can perform many functions on your computer without your knowledge. This includes software that may allow a cybercriminal to take control of your computer or keystroke software that tracks everything you type into your computer including passwords and sensitive information. Once the cybercriminals have your information they may file taxes on your behalf to get your refund or use your debit and credit card information to make unauthorized purchases. Identity theft can also occur from these scams.
It’s important to know that the IRS does not randomly contact taxpayers or tax professionals via email – including asking individuals to confirm their tax refund information. The IRS initiates most contacts through regular mail delivered by the United States Postal Service. There are, however, special circumstances in which the IRS will call or come to a home or business, such as when a taxpayer has an overdue tax bill, to secure a delinquent tax return or a delinquent employment tax payment, or to tour a business as part of an audit or during criminal investigations. Even in these rare cases, taxpayers will receive several letters (“notices”) from the IRS in the mail prior to these visits.
THE IRS DOES NOT:
Demand that taxpayers use a specific payment method, such as a prepaid debit card, gift card or wire transfer. The IRS will not ask for debit or credit card numbers over the phone. Taxpayers should make check payments to the “United States Treasury” or review IRS.gov/payments for IRS online options
Demand that taxpayers pay taxes without the opportunity to question or appeal the amount they say is owed. Generally, the IRS will first mail a bill to those who owe any taxes. Taxpayers should also be advised of their rights as a taxpayer.
Threaten to bring in local police, immigration officers or other law-enforcement to have taxpayers arrested for not paying. The IRS also cannot revoke a driver’s license, business license or immigration status. Threats like these are common tactics scam artists use to trick victims into buying into their schemes.
With scams like these circulating, taxpayers and tax professionals should take ongoing security precautions to protect their identities and their computer networks from identity thieves. If you are a client, please forward any questionable contact from the IRS or other collection agency to me, and I can help you determine if the request is legitimate, and if it’s not, I can assist in reporting it to the IRS or other government agency.
Here are a few basic security steps for taxpayers:
Always use security software with firewall and anti-virus protections. Make sure the security software is always turned on and can automatically update. Encrypt sensitive files such as tax records stored on computers. Use strong, unique passwords for each account.
Learn to recognize and avoid phishing emails, threatening calls and texts from thieves posing as legitimate organizations such as banks, credit card companies and even the IRS. Do not click on links or download attachments from unknown or suspicious emails. Again, clients can always reach out to me about any emails, letters or phone calls they receive that they are unsure about.
Protect personal data. Don’t routinely carry Social Security cards, and make sure tax records are secure. Shop at reputable online retailers. Treat personal information like cash; don’t leave it lying around.