The already-bad tax identity theft situation has gotten worse, so much so that the IRS has released two public service announcements to warn people about the importance of protecting their identities.
The Treasury Inspector General for Tax Administration (TIGTA) has put on Youtube announcements in English and Spanish that warn people about tax scammers (https://www.youtube.com/user/TIGTAVIDEOS). The criminals’ two victims are the taxpayers and the government: The more illegal activity the government can deter, the better off are taxpayers and the treasury.
Tax scammers use a variety of schemes to separate individuals, businesses, and nonprofit organizations from their money; their burglary tools are principally telephone, email and even texts.
A fraudulent email’s realistic-looking elements are such that a Knoxville man who knows that such criminal enterprises exist nevertheless called a phone number that warned him of a problem. As he spoke to the person who answered, he noticed on closer inspection a grammatical mistake in the body of the message.
He said, “This is a scam, isn’t it?” The response, he said, was a stream of profanity from the man on the phone that would peel paint off a Navy ship. The Knoxville man escaped being a victim, but it was close.
In phone calls, people representing themselves as IRS agents calling about a tax matter can sound authoritative and convincing – or angry and intimidating. Their tactics may range from polite requests to threats of arrest and jail time. What they want is your money, right now. Any delay and they know they’re likely to get nothing.
The PSA says IRS “always” initiates taxpayer contact through the U.S. Mail. However, the agency’s website says first contact with a taxpayer is “normally” through the mail. Normally doesn’t mean always, which means extra vigilance from taxpayers is needed.
Furthermore, “IRS revenue officers and agents routinely make unannounced visits to a taxpayer’s home or place of business to discuss taxes owed, delinquent tax returns or a business falling behind on payroll tax deposits,” says the agency’s website.
With all of that said, what’s a taxpayer to do?
If you get an email, phone call, or text message in which someone claims to be from the IRS and demands payment immediately, it’s an attempt at theft. Hang up, or don’t answer the email or text.
If you receive official-looking documents in regular mail that demand immediate payment for taxes owed, it’s almost certainly a scam. If someone appears, announced or unannounced, at a home or business saying they’re from the IRS, the agency says that they should have two forms of identification, a pocket commission and a Personal Identity Verification Credential.
But in a world in which false things can look or seem very real, and where even a car can be made with specialized printers, how can you be sure the credentials are real?
Another IRS web page provides guidance (https://www.irs.gov/newsroom/how-to-know-its-really-the-irs-calling-or-knocking-on-your-door-collection).
Following IRS guidance on how to contact the agency is certainly a good practice.
Nevertheless, if there’s any doubt, obtain the number of a no-doubt-about-it IRS office, and call. You might not get through right away. That’s OK. If the people contacting you are legitimately from the IRS, that shouldn’t be a problem for them, because the IRS is the agency warning everyone to be on the lookout for tax scams and to take precautions.
It’s a variation on an old saying: Trust, maybe, but verify, certainly.
This article first appeared in KnoxNews.