Protecting Yourself from IRS Impersonations

Protecting Yourself from IRS Impersonations

Written by Nathan Woolard

In our August blog, we discussed the effects of data breaches and how to minimize damage taken in their aftermath.  However, not all information theft occurs on such a widespread or impersonal level.  Many scammers make their approach on a more direct level to nab your information straight from the source:  you.  Some of the most commonly employed scams are run by individuals impersonating IRS officials, with the intent of tricking you into handing over personal information or payment without question.  These scammers will often use fake names, provide phony IRS badge numbers, and even alter caller ID to make their efforts appear legitimate.  To avoid falling prey to these frauds, it is important to recognize the warning signs of a tax scam.

·         In general, the IRS will NOT initiate contact with taxpayers via email, text messages, or social media, and they will not request detailed personal information.  Any such contact is an immediate sign of a “phishing” scam designed to access your personal data or financial assets.  Do not reply, open any attachments, or click on any links.

·         The IRS will NOT demand immediate payment through any particular payment method, such as prepaid debit cards, gift cards, or wire transfer; typically, anyone who owes taxes will first receive a bill in the mail. 

·         The IRS will NOT demand that you pay taxes without granting your taxpayer rights to question or appeal the amount they claim you owe. 

·         Most importantly, the IRS will NEVER threaten to bring in law enforcement or immigration officers.  Scammers are fond of using scare tactics such as these to pressure their targets into giving up information, but the IRS cannot have you arrested or deported for not paying, nor can they revoke your driver’s license or business licenses.

While the IRS initiates most contact through regular mail, there are special circumstances when they will call or come to your home or business.  However, they will first send out several notices by mail.

·         In person, a legitimate IRS representative will always provide two forms of official credentials, called a pocket commission and a HSPD-12 card, and you can verify their identity by calling the IRS.  Do NOT give them information until you have verified their identity!

·         IRS collection employees seeking a tax debt may call or come to a home or business unannounced, but they will NOT require immediate payment to any source except the U.S. Treasury. 

·         Private debt collectors will NEVER be enlisted without prior written notice and they will NOT ask for payment directly.    

·         IRS criminal investigators may visit a home or business unannounced but will NOT ask for any kind of payment.

·         If you receive a phone call claiming to be from the IRS, make note of the supposed-employee’s name, badge number or other credentials, the phone number you are instructed to call back, the phone number the call came from, and a description of the conversation.  Then hang up and contact the IRS to verify the validity of the call.  Do NOT give the caller any personal information!

Overall, the best repellent for identity theft is a healthy level of skepticism.  Be wary of communications from unexpected sources and don’t respond to questionable calls, standard mail, email, or faxes without verifying their authenticity.  Don’t provide your passwords or PIN numbers to unusual contacts and don’t click on links or attachments in suspicious emails.  Finally, always be sure to thoroughly shred any documents containing your private information before throwing them away.  Scammers may be everywhere, but a little awareness goes a long way in protecting yourself from fraud.