How to Verify IRS Inquires and Avoid Fraud

As millions of Americans navigate tax season, scammers impersonate IRS employees and demand payment for money they do not owe. While these scams occur throughout the year, they are particularly prevalent between February and April. Knowing what to look for and ways to protect yourself will ensure you do not fall victim to these malicious scams.

Phone Scams

One of the most common attempts scammers will use when pretending to be IRS agents is calling via telephone. The impersonator will demand immediate payment for fraudulent tax debts.

• The scammer will attempt to frighten you into making impulsive decisions. Often, they threaten that an arrest warrant will be issued if the payment is not made.

• They demand unusual payment methods like gift cards, wire transfers, Venmo, Cash App, PayPal, or Bitcoin.

• The caller ID will also be altered to make it seem like the call originated from the IRS. This is called spoofing.

If you receive a call from someone claiming to be from the IRS, hang up the phone. The IRS will not call and demand payment to prevent your arrest.

Text and Email Scams

Scammers widely use phishing texts and emails because they are easy to send and can reach thousands of recipients simultaneously. These messages may include:

• IRS logo(s) to appear legitimate.

• State you are owed a refund and direct you to click a link to receive it.

• States there is an issue with your tax return that needs to be corrected immediately.

Do not click on links provided in texts or emails. Additionally, the IRS will not initiate contact via text or email regarding tax-related issues.

These Scams Can Leave a Lasting Impact

IRS scams often result in identity theft. The scammer may use your Social Security number to file fraudulent tax returns in your name in these scams. Additionally, the scammer could steal your tax refund and even open credit accounts using your identity.

How to Protect Yourself from Fraud

• Do not interact with suspicious texts, phone calls, or emails.

• Do not share personal information with unexpected/unknown sources.

• Verify the contact by calling the IRS at 800-829-1040

• Report IRS scam attempts to the IRS and the Federal Trade Commission (FTC) online at FTC.gov

Melani Abel, the Frandsen Bank & Trust SVP, Director of Risk Management, states, "Staying alert and skeptical of IRS communications via text, email, and phone calls is important. Remember, the IRS won't pressure you for personal information or payments in unusual manners. Protect your financial well-being by being cautious and informed.”