How to Spot and Report IRS Impersonation Scams

Thousands of people have fallen victim to IRS impersonation scams, losing millions of dollars and exposing their personal information. A sure sign of a scammer is the use of communication methods that the IRS would never use to request personal information, such as regular mail, telephone calls, and emails.

Recent scams have involved complex schemes, such as misleading taxpayers into purchasing clean energy tax credits under false pretenses or manipulating the Employee Retention Credit (ERC) claims through aggressive advertising and fraudulent promotions.

The IRS has warned of new tactics such as ransomware attacks targeting car dealerships and educational institutions, indicating a broader focus on organizational targets beyond individual taxpayers. Rising phishing and smishing scams further demonstrate the need for both individuals and businesses to stay alert to unsolicited messages that might compromise sensitive information.

Recognizing IRS scams

Common characteristics of IRS scams

IRS scams often feature fraudsters pretending to be IRS agents, typically demanding immediate payment through prepaid debit cards, gift cards, or wire transfers. They use aggressive and intimidating tactics to create a sense of urgency and fear. The scammers often employ fake names and fraudulent IRS identification badge numbers to appear legitimate. Phone scammers frequently alter the caller ID to make it look as though the call is coming from the IRS.

Phishing emails are another prevalent method used by these fraudsters. These emails usually have urgent subject lines, such as “Immediate Action Required” or “Final Notice,” designed to panic recipients into quick decisions. The emails contain active links or attachments that may lead to malicious sites or download harmful software. Other forms of communication like text messages or messages through social media, claiming to be from the IRS, also fall into this category.

Common targets

Scammers often target vulnerable populations, primarily older people, who might be less familiar with the subtleties of digital communication. Fraudsters posing as government officials frequently exploit fear and confusion to steal sensitive information and money from these individuals.

Tax professionals and businesses are also prime targets, given their perceived access to substantial amounts of personal data and money.

Educational institutions, including students and staff with “.edu” email addresses, have also been targeted.

Immediate actions to take

During the scam encounter

Hang up the phone immediately and refrain from engaging further. Note the caller’s telephone number, as this information can be useful for subsequent reporting to the proper authorities. Email phishing@irs.gov with the subject line “IRS Phone Scam,” including specifics such as the caller ID and callback number.

Post-encounters and verifications

After hanging up, verify the legitimacy of the call by contacting the IRS directly at 1-800-829-1040. Forward suspicious emails to phishing@irs.gov without clicking any links or attachments.

Reporting IRS impersonation scams

Email and online scams

Once you have forwarded the unsolicited email to phishing@irs.gov, delete the original email.

Phone scams

For fraudulent IRS phone calls, use the irs.gov email above with the subject line “IRS Phone Scam,” including specifics such as the caller ID and callback number.

Further reporting

• Federal Trade Commission (FTC): Report the scam to the FTC, which assists in compiling data on fraud cases. Visit their website to submit a report.
• Treasury Inspector General for Tax Administration (TIGTA): Provide a detailed account of the scam by contacting TIGTA online or at 1-800-366-4484.
• Form 3949-A: Use this form to report suspected tax law violations that you believe are being facilitated through fraudulent means.
• IRS e-file program: Report any fraudulent activities related to the IRS e-file program using established reporting channels.

Consequences and preventive measures

The impact of IRS scams

IRS scams lead to significant financial loss and identity theft, affecting thousands of individuals and businesses. Victims can lose millions of dollars as scammers employ various tactics to steal money and sensitive information. Affected businesses may suffer reputational damage and operational disruptions, further exacerbating financial concerns

Proactive steps to protect yourself

Safeguard personal information by securing documents that display your Social Security number and avoiding its routine use. Recognize phishing tactics; avoid clicking on links in unsolicited emails and verify the authenticity of communications claiming to be from the IRS.

Only share sensitive information through secure, verified channels. Consult reputable tax professionals for advice rather than relying on social media, where misinformation is rampant.

Stay informed about the latest scam tactics, such as those involving bogus IRS letters and the exploitation of clean energy credits under the Inflation Reduction Act (IRA). Check your credit report and Social Security Administration earnings statement regularly to try to detect early signs of identity theft.

If targeted by any scam, report it to the authorities listed in the previous section.

The persistent threat of IRS impersonation scams necessitates a proactive and informed approach to safeguard personal and financial information. These scams are continually evolving, targeting a diverse range of victims including individuals, businesses, and educational institutions. Awareness of the common characteristics and tactics of scammers empowers you to help protect yourself effectively.

For detailed guidelines and reporting tools, visit the IRS’s official page on tax scams consumer alerts.