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IRS Impersonation Scams: How to Recognize and Avoid Them

As 2023 draws closer to the end, it means the 2024 tax season will be coming soon. During and before a tax season can be a stressful time for many taxpayers, especially when they have to deal with complex and confusing tax laws and regulations.

However, pre-tax season, tax season, and post-tax season is also prime time for scammers, who prey on the fear and anxiety of unsuspecting taxpayers. One of the most common and dangerous types of tax scams is the IRS impersonation scam, where fraudsters pretend to be IRS agents or other government officials and demand money or personal information from their victims.

These scammers use various tactics, such as phone calls, emails, text messages, or social media, to contact their targets and threaten them with legal action, arrest, deportation, or license revocation if they don’t pay or comply. They may also try to trick their victims into clicking on links or opening attachments that contain malware or phishing sites.

However, these are all signs of a scam. The IRS and other government agencies will never contact taxpayers in these ways and ask for money or personal information. In this article, we will share some tips on how to recognize and avoid IRS impersonation scams.

How to recognize IRS impersonation scams

The first step to protect yourself from IRS impersonation scams is to recognize the red flags that indicate a scam. Here are some of the common signs of an IRS impersonation scam:

  • The caller or sender claims to be from the IRS or another government agency and demands immediate payment of taxes or penalties that you owe. They may also claim that you have a refund or a stimulus check waiting for you, but you need to pay a fee or verify your information first.
  • The caller or sender asks you to pay by wire transfer, cash, gift card, cryptocurrency, or any other method that is hard to trace and recover. They may also ask you for your bank account, credit card, Social Security number, or other personal information.
  • The caller or sender threatens you with harsh consequences if you don’t pay or cooperate, such as suing you, arresting you, deporting you, revoking your license, or freezing your assets. They may also try to intimidate you by using fake names, badge numbers, case numbers, or caller ID information.
  • The caller or sender pressures you to act quickly and not to contact anyone else about the matter. They may also tell you not to hang up the phone until you make the payment or provide the information.
  • The caller or sender sends you an email or a text message that contains links or attachments that claim to be official documents, forms, invoices, receipts, or notices from the IRS or another government agency. They may also use logos, seals, signatures, or other elements that look authentic.

How to avoid IRS impersonation scams

The second step to protect yourself from IRS impersonation scams is to avoid falling for their tricks and traps. Here are some of the best practices to avoid IRS impersonation scams:

  • Don’t trust your caller ID. Scammers can spoof caller ID to make it look like they are calling from a real IRS or government phone number. Even if the caller ID says “IRS” or shows a real phone number, don’t believe it. It could be anyone calling from anywhere in the world.
  • Don’t wire money, send cash, or use gift cards or cryptocurrency to pay someone who claims to be from the IRS or the government. Scammers ask you to pay these ways because they are hard to trace and almost impossible to recover. They will take your money and disappear.
  • Don’t give your financial or other personal information to someone who calls, texts, or emails you and says they are from the IRS or the government. If you think the contact could be legitimate, hang up and call the agency directly using a phone number that you know is correct. Don’t use any phone number or link that the caller or sender provides.
  • Don’t click on links or open attachments in unexpected emails or text messages that claim to be from the IRS or the government. Scammers send these messages to steal your money and your personal information. They may also infect your device with malware that can harm your data and security. Delete these messages and don’t forward them to anyone else.
  • Report any IRS or government impersonation scams that you encounter to the appropriate authorities. You can report IRS impersonation scams to the Treasury Inspector General for Tax Administration (TIGTA) at [tigta.gov] or by calling 1-800-366-4484. You can also report them to the Federal Trade Commission (FTC) at [ReportFraud.ftc.gov]. You can also forward any suspicious emails or text messages to phishing@irs.gov.

By following these tips, you can protect yourself and your money from IRS impersonation scams. Remember, the IRS and other government agencies will never contact you in these ways and ask for money or personal information. Only scammers will do that.

If you need help with your taxes or are going through an IS audit, contact us for representation.

Frequently Asked Questions

  1. Are there any IRS scams going around?

Yes, IRS scams are unfortunately common. Scammers often impersonate IRS officials, threatening individuals with fines or legal action for unpaid taxes. They might demand immediate payment via phone calls, emails, or text messages. It’s crucial to be cautious and verify any communication claiming to be from the IRS.

  1. What are government impersonation scams involving?

Government impersonation scams involve fraudsters posing as representatives of government agencies, such as the IRS or Social Security Administration. They use various tactics, including phone calls, emails, or official-looking letters, to deceive people into providing personal information or money under false pretenses.

  1. How do I protect myself from impersonation scams?

To protect yourself from impersonation scams:

  • Verify Contacts: Confirm the identity of callers or email senders by directly contacting the official agency using publicly available contact information.
  • Guard Personal Information: Avoid sharing sensitive information like Social Security numbers or financial details unless you’re certain of the recipient’s legitimacy.
  • Use Security Software: Maintain up-to-date security software on your devices to prevent phishing attempts.
  • Be Skeptical: Be cautious of unsolicited communications, especially if they demand immediate action or threaten consequences.
  1. Who are fraudsters likely to impersonate?

Fraudsters often impersonate government officials, financial institutions, tech support companies, or charitable organizations. They choose entities that instill trust and authority, making it easier to deceive victims.

  1. What are the three most common scams?

The three most common scams include:

  • Phishing Scams: Fraudsters use fake emails, websites, or phone calls to trick individuals into revealing personal information.
  • Impersonation Scams: Scammers pose as trusted entities, such as government officials or utility companies, to deceive victims into providing money or sensitive information.
  • Tech Support Scams: Scammers claim to be tech support personnel, tricking individuals into granting remote access to their computers or paying for unnecessary services.
  1. Does impersonation count as identity theft?

Yes, impersonation can be considered a form of identity theft. When someone impersonates another person, especially for financial gain or to commit fraud, it involves misusing someone’s identity, which falls under the broader category of identity theft. Impersonation scams can lead to severe consequences for the victims, both financially and emotionally.

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