Tips To Help Spot and Avoid Tax Scams

Tax season is a busy time of year. It is also busy for savvy criminals. Scammers impersonating the IRS either over-the-phone, by email or in-person can steal money from people. You should stay vigilant against these schemes.

Here are some tips to help people recognize and avoid tax-related scams.

Email phishing scams

The IRS does not initiate contact with taxpayers by email to request personal or financial information. Generally, the IRS first mails a paper bill to a person who owes taxes. In some special situations, the IRS will call or come to a home or business.

Taxpayers should report IRS, Treasury or tax-related suspicious online or email phishing scams to [email protected]. You should not open any attachments, click on any links, reply to the sender, or take any other actions that could put you at risk.

Phone scams

The IRS generally first mails a bill to a taxpayer who owes taxes. There are specific ways to pay taxes. The agency and its authorized private collection agencies will not:

  • Leave pre-recorded, urgent, or threatening messages on an answering system.
  • Threaten to immediately bring in local police or other law enforcement groups to arrest the taxpayer for not paying, deport them or revoke their licenses.
  • Call to demand immediate payment with a prepaid debit card, gift card or wire transfer.
  • Ask for checks to third parties.
  • Demand payment without giving the taxpayer an opportunity to question or appeal the amount owed.

Criminals can fake or spoof caller ID numbers to appear to be anywhere in the country. Scammers can even spoof an IRS office phone number or the numbers of various local, state, federal or tribal government agencies.

If a taxpayer receives an IRS or Treasury-related phone call, but doesn’t owe taxes and has no reason to think they do, they should:

If a taxpayer wants to verify what taxes they owe the IRS, they should:

More information:
Avoiding Social Engineering and Phishing Attacks– Department of Homeland Security
Security Awareness for Taxpayers

Davis & Hodgdon Associates CPAs has been assisting individuals and businesses throughout Vermont and New England for more than 30 years so please reach out to us in Williston (802-536-1831) or Rutland (802.775.7132) to talk or schedule a meeting. You can also email us at [email protected].

Resource: IRS- Issue Number: Tax Tip 2021-30: Tips to help taxpayers spot and avoid tax scams

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