The Federal Trade Commission is warning of an ‘overdue tax debt’ scam, in which scammers impersonate IRS agents to threaten and scare victims into making payments. According to the Commission nearly five million dollars have been scammed by criminals pretending to be IRS agents in the past five years.
How the Overdue Tax Debt Scam operates
The scam starts with an unsolicited telephone call from an individual purporting to be from IRS services. The caller is likely to tell you that you have an outstanding tax balance which is overdue, necessitating immediate payment by wire transfer or other method.
It is common for them to have certain information about you, to make the scam appear more believable. That information could have been gleaned from a variety of sources, whether your accounts being hacked, identity theft, or you posting personal data on the web for any one of a number of reasons (dating websites, job seeking, etc.)
it’s quite simple. In fact, according to statistics, out of those targeted by scammers, millions could have been educated; however, not all are vulnerable.
Never give out such details, and never authorize a stranger or even friends who do not live in your house to buy anything on the internet using your credit card, even though it can be hard to say ‘no.’ In such a case, how could you give it, i.e., try to sound confident but convincing at the same time? Thus, this modest amount offered by someone who wants to buy something means nothing when compared to that person’s future warning regarding those e-mails with huge sums attached that go from bank compliance officers across the globe.
Scammers and their Tricks
Crooks have utilized advanced technology to support their fraud. Well-known telephone number tampering is one of the strategies where the con man or woman plays around with the caller ID so that it shows it is the IRS who is ringing you. This deception method can easily mislead even the most attentive people into following the orders of a swindler.
This is because when you show some reluctance to help them out or simply say ‘No’, they may turn violent by threatening things like imprisonment, deportation, or even closing down your business or suspending your driving license. These threats are usually used to create panic and urgency, which will prompt foolishness and unmeasured actions on the part of the victims, leading them to give away their money details.
Why Are You Being Targeted?
People with certain characteristics are often set upon by scams that are perpetrated. As an illustration, persons who may not hear or see well may fall prey to fraudsters who use specialist systems such as video relays, making it seem like a service is genuine when it is not, but rather through an interpreter. In the same vein, if you are not a native speaker of English, some crooks will call you in your mother tongue, thereby increasing fear and anxiety about police arrest threats.
There is particular emphasis on old people because they have memory lapses that lead them into oblivion and make them easy targets for these scams. Whatever their aim, vagabondage has always been prepossessed by any casual estimation.
What the IRS Will Never Do
Understanding what the IRS does and doesn’t do can help protect you from falling victim to these scams. The IRS will never:
- Call for payment without first sending you a letter by mail. The IRS always initiates contact through official correspondence, not by phone.
- Ask for payment via email or demand immediate payment through a gift card or wire transfer. Legitimate tax payments are always made through official IRS channels, never through unconventional methods.
- Threaten to bring you into police custody or have you arrested. The IRS does not use law enforcement as a collection agency.
- Refuse to allow you to appeal your case. You always have the right to challenge any tax-related issues before making a payment.
- Ask for credit or debit card information over the phone. Financial information should never be shared during a phone call initiated by someone claiming to be from the IRS.
- Leave an urgent callback message after unexpectedly calling you. The IRS does not leave threatening or urgent messages demanding immediate action.
Guidelines for Verification and Self-Protection
In case of a suspicious call, it’s important to remain composed and not to divulge any personal information. Rather, do the following to ascertain the authenticity of the call:
1. If the fraudster claims to be from an organization, check its legitimacy on the Better Business Bureau (BBB) website.
2. Verify whether there exists a genuine relationship by comparing the caller’s details with those in the IRS’ list of respectable partners.
3. Log into your online IRS account before getting informed about your balance and outstanding tax dues.
4. If you are doubtful concerning the truthfulness of the call or the owed amount, consult a tax lawyer or reliable tax expert.
5. You can report the con job to TIGTA through their number 1-800-366-4484 or file a complaint online with either FCC or FTC.
What to Do If You Owe Back Taxes
First, should you owe back taxes, the IRS will contact you by mail as a first step; in that letter, they will include more information about your debt, including ways of resolving it. Your online IRS account, where you can check your current balance, tax records, and available payment options, is also a good place to verify the status of your tax.
Only those who require assistance can have the option for free tax counseling consulting services like VITA and TCE. Through these services, taxpayers may receive the necessary guidance to deal with their tax-related concerns.
Remain Alert
The importance of being on guard has never been this high due to the ever-changing techniques used by swindlers. By understanding signs of fraud and recognizing IRS operations, you will spare yourself and your loved ones from falling into these traps. If you become one of them, reach out to the IRS immediately for reporting purposes and to secure your financial records from further attacks.
Read about how scamming affects your social security.
