Nobody wants to get in trouble with the IRS – and that is exactly what some unscrupulous people count on. Over the years, tax scams that attempt to extort money from people by claiming that they owe taxes have become increasingly complex.
From phone calls to emails and text messages sent to mobile phones, these scammers stop at nothing. According to a well regarded CPA near me in Highlands Ranch, these are some of the most common tactics they use:
1. Pay Up or You Will Be Arrested
This type of scam is done over the phone. Someone claiming to be from the IRS – without giving their name or job title – will tell you that you owe money in taxes. Actually, there is a police car on the way to arrest you, but you can quickly solve the issue by giving your credit card details to settle the debt. Don’t ever do that – this is NOT how the IRS enforces overdue taxes.
2. The Gift Card Scheme
Scammers use this type of tactic around the holiday season. Victims are harassed by phone or repeated text messages or live chats. The scammer instructs them to buy gift cards from various stores and send the codes to settle an alleged tax penalty. Once again, this not how the IRS collects taxes.
3. The Taxpayer Advocate Scam
This scam impersonates an actual IRS service – the Taxpayer Advocate Service. The calls are made by humans or robots and instruct the victim to give their personal details, including the Social Security number. These data are then used to steal your identity and perform fraudulent financial transactions in your name.