A serious threat has come to the attention of your tax professionals at Yankee Farm Credit. According to
the IRS, some taxpayers are facing a new and scary form of fraud: con artists
claiming to be IRS employees and soliciting taxpayers for unpaid taxes. A
growing and increasingly severe problem, the IRS now considers this fraud their
#1 issue—overtaking traditional identity theft and other scams at the top of
the agency’s list of threats. To date, the IRS estimates that around 1,000
victims have lost over $5 million to these fraudsters. The con artists have targeted victims in every state and from every walk-of-life, including farmers in Vermont, New Hampshire, and New York.
The con artists follow a similar formula: they contact taxpayers using phony IRS
phone numbers, and send emails that appear to be from a legitimate address. Some con artists show
up at the taxpayer’s residence or place of business with fabricated IRS badges,
threatening to jail or deport the taxpayer, or demanding property and drivers’
licenses from the victims. An accomplice may even follow up the visit by
placing a phone call to the victim and pretending to be with the local police
department. The con artists usually demand payment in cash or by delivery of
prepaid debit cards, oftentimes specifying where these cards should be
purchased. They are persistent, and may make repeated phone calls, emails, and
visits to their targets.
How can one
spot these scammers? By knowing how the IRS actually works, and understanding
the methods and protocols of legitimate IRS employees.
- IRS employees never make first contact with a taxpayer by phone call or email. The IRS first contacts taxpayers by mail. They may only phone or email the taxpayer if there has already been contact made by mail, or if the taxpayer initiated contact by placing a phone call or email to the IRS.
- The IRS never initiates collection of taxes by phone or email.
- The IRS never demands payment or threatens enforcement without first offering the taxpayer the opportunity to appeal or contest the tax assessment.
- The IRS does not accept debit cards, and they never specify which financial institutions or modes of payment a taxpayer must use.
- The IRS never confiscates drivers' or business licenses.
- The IRS does not use local or state law enforcement to collect taxes.
Con artists often gather personal information from hospitals, medical clinics, and nursing homes. Please check directly with an institution if you have any questions or concerns about their procedures for securing personal data.
To report suspicious activity or contact from scammers, call the office of the IRS Inspector General at 800-366-4484, or visit www.tigta.gov or www.ftc.gov and follow the appropriate links.
SOURCE: "The General Ledger: The Complete Newsletter for Professional Bookkeepers," The American Institute of Professional Bookkeepers (AIPB), October 2014. www.aipb.org
