IRS scams come in many forms these days – through the mail, over the phone, in person and online. Tax scams and fraud are generally used by criminals to steal someone’s identity by obtaining their tax records. They are often also used to get money from a taxpayer who has been convinced that they have not paid their taxes or owe back taxes. As scammers become more sophisticated in their techniques it can be harder and harder to spot the fakes. But knowledge is power, especially when it comes to avoiding tax scams. Tax payers need to have knowledge of three things: the current major scams that are in use, what the IRS actually does do/ask for and what the IRS does NOT do/ask for.

The IRS Does Not:

• Call to demand immediate payment using a specific payment method, such as a prepaid debit card, gift card or wire transfer.

• Demand taxpayers pay taxes without the opportunity to question or appeal the amount owed.

• Threaten to bring in local police, immigration officers or other law enforcement to have someone arrested for not paying.

• Threaten to revoke someone's driver’s license, business licenses or immigration status.

The IRS Does:

• In general, first mail a bill to any taxpayer who owes taxes.

• Normally initiate contact with taxpayers through mail delivered by the United States Postal Service (versus a private delivery service such as FedEx or UPS).

• Present official identification when visiting a taxpayer. Taxpayers have the right to see these credentials, and if they would like, the representative will provide them with a dedicated IRS phone number for verifying the information and confirming their identity.

• Call or visit a home or business under certain circumstances. This includes 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 criminal investigation. Even then, taxpayers will generally receive several letters from the IRS in the mail first.

• Assign certain cases to private debt collectors, but only after written notice is given to the taxpayer and their appointed representative.

• Offer several payment options. Payment by check should be payable to the U.S. Treasury and sent directly to the IRS, not a private collection agency.

How To Spot a Fake

If you receive any communication from the IRS that you feel uncertain about, do not respond directly to the email or phone number provided in the document or message. Instead, go to the official IRS website and call the customer service number there. They can verify if the document or solicitation you received is valid. You can also report a phishing or scam attack on the IRS website to help alleviate the problem for other taxpayers.

Tax schemes change from year to year as scammers attempt to keep taxpayers on their toes and as confused as possible. For this reason, the IRS has dedicated a section of their website to recent acts of tax fraud which resulted in identity theft. These examples are pulled directly from written public record documents on file in the courts within the judicial district where the cases were prosecuted. This means you can see the details of real-life scams to help determine if what you’re experiencing is something that has been found to be fraudulent.

Another great way to protect yourself from tax scams is to work with an experienced CPA for your tax filing. Any documentation or communication you receive from the IRS can then be forwarded to them for verification. CPAs are much more likely than the average person to know the ins and outs of current scams and the signs of fraudulent activity.