Taxpayers Beware of IRS Phone Scams

The IRS has been warning taxpayers to beware of a multitude of scams these past few months. In fact, CBS This Morning aired a story on their show today about active phone scams. Those scams have hit home recently with several of our clients.

One story goes like this...A physician client emailed to let me know he was receiving messages on his home answering machine from the IRS stating he owed back taxes and should call 201-254-****. Our client had not received any letters in the mail from the IRS and all of his quarterly payments, including any past-due payments, were all up-to-date. Since I have power of attorney for this client, I decided to call the number on his behalf to settle the matter - even though I had a strong hunch this was a hoax.

I called twice:

1. The gentleman on the other line answered in a heavy foreign accent – “This is the IRS, Jonathan speaking.” I stated that I was calling on behalf of one of my clients and would be happy to give him my power of attorney if he could tell me his ID number and what office he was calling from, since this is not how the IRS normally operates. He asked me if I was an accountant and when I said "Yes," he hung up.
2. Well just to make sure that we did not get cut off, I called back and gave a bogus name for my client and stated that I had power of attorney. "We don't talk to accountants," he said - then hung up.

There it was - a confirmed scam. A quick search on the IRS website turned up a newsroom article providing taxpayers with tips to protect themselves from telephone scam artists calling and pretending to be with the IRS. It said:

These callers may demand money or may say you have a refund due and try to trick you into sharing private information. These con artists can sound convincing when they call. They may know a lot about you, and they usually alter the caller ID to make it look like the IRS is calling. They use fake names and bogus IRS identification badge numbers. If you don’t answer, they often leave an “urgent” callback request.

“These telephone scams are being seen in every part of the country, and we urge people not to be deceived by these threatening phone calls,” IRS Commissioner John Koskinen said. “We have formal processes in place for people with tax issues. The IRS respects taxpayer rights, and these angry, shake-down calls are not how we do business.”

So what are the tell-tale signs of a scam? Remember that the IRS will NEVER:

1. Call to demand immediate payment, nor will they call about taxes owed without first having mailed you a bill through the U.S. Postal Service.
2. Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
3. Require you to use a specific payment method for your taxes, such as a prepaid debit card.
4. Ask for credit or debit card numbers over the phone.
5. Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying.

Phone calls are not the only way scam artists are trying to get your money. That's why it's important to remember, too, that IRS correspondence is sent to mailboxes through the U.S. Postal Service. The IRS never contacts taxpayers via e-mail, text message or social media to ask for personal or financial information. An IRS solicitation in any format other than a letter sent through the U.S. Postal Service could be a ploy to steal your personal information or access your financial records.

If you think someone is using an IRS scam on you, don't give up any personal information. Instead, check www.irs.gov and type "scam" in the search box for the latest taxpayer notices and information on how to report a scam. If you want the top-notch investigative skills of one Mr. Jeffrey McGowan, CPA, I'm just a phone call or email away.

Written by: Jeff McGowan, CPA, CGMA
jmcgowan@klcpas.com
Phone: 574.289.4011, x245