IRS Warns of Back Tax Phone Scams Targeting Taxpayers

The phone sounds scary. You owe taxes and you need to pay them quickly.

The call will come from the “Tax Mediation and Resolution Agency,” or the “Tax Resolution Oversight Department,” or another official sounding office.

There are none.

“We’re seeing a wave of reports about phone scams claiming to owe tax refunds,” the Federal Trade Commission’s consumer alert said. “But it’s not the IRS that’s cheating, it’s the scammer.”

Know this, first: the first contact from the IRS regarding any problem, even tax refunds, will always come via US mail, not by phone or text message.

What are tax fraudsters after?

Often, scammers want money, your personal information, or both, the FTC says.

“They’ll say you haven’t paid your taxes and promise to put you in touch with a ‘tax resolution officer,’ who can ‘check for red flags’ on your credit and help you apply for an ‘IRS debt reduction program.’ But those are not real programs and that is your signal to hang up,” the FTC said.

Often, they’ll ask for your Social Security number or try to charge you an “unlawful upfront fee” for tax credit relief, which can run into the thousands of dollars. Such services rarely pay bills, the FTC says, and may not even send your paperwork to the IRS through the hardship programs they advertise.

Be aware of any scammers trying to get payment online, especially if they ask for gift cards or prepaid debit cards.

How can you tell if a call or text is from the IRS?

The IRS only sends emails or documents with your permission, the agency said. The IRS or other secret agencies may call you to discuss account matters. In some cases, the IRS uses automated messages, but it will direct you to IRS.gov to securely manage your account, make a payment, or resolve a problem, and will not share specific information.

The IRS will not:

• Send a direct message or make a payment on social media
• Accept gift cards or prepaid debit cards as payment
• Send spam messages that are threatening or direct to websites other than IRS.gov
• Threatening to call law enforcement or immigration officials
• Take your citizenship, driver’s license or business license
• Tax debt settlement email ads

What do I do if I get a call about back taxes?

According to the FTC:

• Never give personal or financial information to an unexpected caller. It’s probably a scammer hoping to drain your bank accounts or steal your identity.
• Hang up the phone. Do not return voicemails.
• Check it out at IRS.gov. Contact the IRS directly for reliable information about your tax situation. Need to talk to someone? Use only the phone number available on the IRS website; never use one in a phone call or text message.
• Learn how government scams work. Start at ftc.gov/imposters and if you see a scam, tell the FTC at ReportFraud.ftc.gov.

You must also report IRS scams to the IRS. On February 26, the IRS launched a new web page that allows taxpayers to easily report suspected tax evasion, fraud, tax evasion, or other illegal tax-related activities.

Where is my refund?

According to the IRS, if you choose direct deposit when you file, you should receive it within five days of processing. Refunds in the mail may take several weeks.

More than 9 out of 10 refunds are issued within 21 days, the IRS says on its website.

Your return may be delayed if there are errors, missing information, or if you have amended it after you filed it.

You can check the status of your refund at irs.gov/wheres-my-refund or by using the IRS2GO mobile app.

If you filed an amended return, go to irs.gov/filing/wheres-my-amended-return.

As of Feb. 20, the IRS has processed more than 41.03 million returns and refunded nearly $110 billion, with an average refund of $3,804, the agency reported.

CA Bridges is a reporter for the USA TODAY Network-Florida journalism Connect team. You can get all the best Florida content straight to your inbox every day of the week by signing up for the free newsletter, Florida TODAY.

This article originally appeared in the Daytona Beach News-Journal: IRS warns of tax phone scams targeting taxpayers

Reported by CA Bridges, USA TODAY NETWORK – Florida / The Daytona Beach News-Journal

USA TODAY Network via Reuters Connect