In October 2013, the Internal Revenue Service issued a warning to taxpayers regarding a widespread and sophisticated phone scam that is among the largest plots by an IRS Agency Impersonator they had ever seen. In a nutshell the scheme is initiated as a caller identifies himself or herself as an IRS agent, and then demands payment of tax liabilities by debit card or wire transfer. If the victim refuses, they are threatened with arrest, business or driver’s license suspension and deportation.
According to Russell George, Treasury Inspector General for Tax Administration (TIGTA), the plot has affected thousands of individuals. The scammers have fraudulently obtained more than $1 million through this IRS agency impersonator scam, and over 20,000 individuals have claimed to be contacted by the fraudsters.
The callers speak from a script to defraud their victims, indicating that the claims by consumers are connected. Common characteristics of the phone calls include:
- Usage of aliases and fake IRS badge details. Common surnames are often used.
- The fraudsters have been known to accurately recite the victim’s Social Security Number, thus creating the impression of legitimacy.
- The scammers are able to emulate the IRS toll-free contact number, so that caller ID technology makes the call appear genuine.
- Some emails have been sent to certain victims in support of the phony telephone calls.
- The IRS agency impersonator scam often includes background noise, intended to make the call seem initiated from a valid call site.
- If the victim refuses to cooperate, victims are threatened with a variety of penalties; then, the scammers hang up and initiate a follow up phone call from relevant authorities attempting to enforce the bogus penalty. Again, caller ID legitimizes the contact.
TIGTA’s George issued a statement to warn consumers, asserting that “If someone unexpectedly calls claiming to be from the IRS and uses threatening language if you don’t pay immediately, that is a sign that it really isn’t the IRS calling.” In fact, the IRS officially initiates contact with a taxpayer via mail or personal visits from a field agent. Plus, the IRS does not accept any payments by phone, including credit and debit cards.
IRS Acting Commissioner Danny Wefel reiterated George’s statement about the IRS agency impersonator scam, saying that “If someone unexpectedly calls claiming to be from the IRS and threatens police arrest, deportation or license revocation if you don’t pay immediately, that is a sign that it really isn’t the IRS calling…We want to educate taxpayers so they can help protect themselves.”
The IRS offered suggestions on how to handle a suspicious call:
- If you know you have no tax liability, call and report the incident to the TIGTA at 800.366.4484.
- If you believe you might owe taxes to the IRS, call the agency at 800.829.1040. The IRS has employees on staff to help determine your tax liability and help with payments.
- If you believe you have been targeted by this IRS agency impersonator scam, visit FTC.gov and follow the guidelines under the “FTC Complaint Assistant – IRS Telephone Scam.”
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