Taxpayer Alert: Fraud & Scams – What To Know To Protect Yourself

There has been a significant increase this year in fraudulent activity and scammers targeting taxpayer’s private personal, business and financial information. The IRS along with many government, state and local agencies have issued warnings to individuals and businesses to be aware of the many common forms of these scams as well as what to do if you fall victim to them.

Many scammers will contact taxpayers pretending to be from the IRS or state governments to steal personal information. Below is a list of useful facts to help identify the legitimacy of any notice, phone call, or email you receive.

• The IRS will never call a taxpayer unless a notice or a letter has been sent to the taxpayer first.
  • • When the IRS contacts a taxpayer it first sends a letter delivered by the U.S. Postal Service.

• IRS, state and local government notices and letters should be read carefully and checked by your accountant for validity.
  • • Many scammers will include legitimate government agency logo’s, names, and reference numbers, but include false addresses, phone numbers and financial information with the intent of stealing taxpayer’s personal information.

• The IRS will never contact a taxpayer by email.
  • • Do not reply to or open any link or attachment from any email claiming to be from the IRS. IRS employee emails will end in irs.gov but always call your accountant to verify an email address.

• The IRS will never send text messages or reach out to taxpayers via social media.
  • • Hackers and fraudsters will impersonate legitimate government agencies and agents to initiate contact with taxpayers on social media and through text messages.

•  Most notices or letters can be searched on the IRS official website by visiting IRS.gov
  • • HOWEVER, not all notices are searchable and just because someone references an IRS notice does not mean the request is legitimate. Always consult your accountant when you receive any notice or letter from the IRS or other government agency.
• In certain situations an IRS employee may contact you after mailing a notice to confirm an appointment or to discuss items for a scheduled audit. Agents can also visit your home or place of business unannounced to discuss taxes owed, delinquent tax returns, or a business falling behind on payroll deposits.
  • • Always ask for an agent’s credentials, including badge, badge number and photo identification prior to speaking to them.

• Payment requested from the IRS will always go to the U.S. Treasury.
• Private debt collectors can call taxpayers for the collection of certain outstanding inactive tax liabilities, but only after the taxpayer and their representative have received written notice.
  • • Debt relief firms are different that private debt collectors. Debt relief firms can call, send lien notices, or email taxpayers with debt relief offers.

• Scammers have often been seen using taxpayer information to file fraudulent tax returns. The IRS will notify taxpayers by sending a letter mailed by the U.S. Postal Service to the taxpayers address on file. The letter should contain information on how to verify personal and financial information.
  • • Due to the unusually high call volumes the IRS has been receiving, you may not be able to speak to an agent right away. If you receive any such letter, let your accountant know as soon as possible.

As always, if you or someone you know receives a notice, phone call, or email from any state, local, or government agency please let us know immediately so we can provide verification or validity. It is important to never communicate with anyone asking for any personal or financial information before informing us.