Tax Scams

With tax season approaching, the LITC wants to provide tips on how to avoid tax scams. 

Recently, one of the LITC’s clients was contacted by someone impersonating a fake IRS employee. In a follow-up call to the IRS, it was discovered that the phone number and name did not exist in the IRS’s database. Therefore, we were able to conclude that our client was contacted by an individual that performs tax scams. Many people pretend to be the IRS in order to scam money out of innocent people. Here are some pointers on how to detect these tax scams. A sure way to figure out if you are talking to a real or fake IRS employee is by the way they introduce themselves on the phone. 

Make sure to listen for a badge number—official IRS employees will always give their badge number when they introduce themselves. Also, when a client has a Power of Attorney filled out and is thus represented by a lawyer, the IRS is not allowed to call the client directly. Therefore, if you have lawyer representation and the “IRS” calls you, that could be a sign that it is a scam. 

Never give personal information over the phone such as your Social Security Number or credit card information!

Things to remember:

Who scammers target: Elderly individuals and people who have a lien against them. When an individual is issued a lien their phone number and other contact information becomes public, therefore we advise that those individuals are extra cautious when it comes to giving out their personal information.

What to look out for: People that ask for credit card information over the phone or being asked to pay by putting money on a gift card.

What to do if you become involved in a tax scam: Contact the LITC, the Taxpayer Advocate Service, or call the IRS.