Don’t Become a Victim of this Tax Scam

Ready or not, tax season is upon us. And it provides yet another opportunity for scammers to try to separate you from your hard-earned money. The Consumer Advice division of the Federal Trade Commission explains:

We’re seeing a big wave of reports about phone scams claiming you owe back taxes. But it’s not the IRS calling, it’s a scammer using a company name like “Tax Resolution Oversight Department.” If someone calls you out of the blue offering to help you fix a tax issue, hang up. Here’s how to spot the scam…

It starts with an unexpected call from the “Tax Mediation and Resolution Agency,” or another official-sounding (but fake) government agency. They’ll say you haven’t paid your taxes and offer to connect you with a “tax resolution officer,” who can do a “red flag check” on your credit and help you apply for an “IRS liability reduction program.” But those aren’t real programs and that’s your sign to end the call.

Some scammers leave a voicemail saying, “This may be our only attempt to reach you” hoping you’ll call back right away. But it’s all part of the story to steal personal information like your Social Security number — or in some cases, charge you an illegal upfront fee for tax debt relief that doesn’t actually help.

Even if you owe back taxes, know this: the IRS’s first contact with you will always come by mail, not by phone. Here’s how to avoid an IRS impersonator and get real help:

• Never give an unexpected caller personal or financial information. It’s probably a scammer hoping to drain your bank accounts or steal your identity.
• Check it out through IRS.gov. Contact the IRS directly for trustworthy information about your tax situation. Need to speak with someone? Only use a phone number found on the IRS’s website. Never one a scammer gives you.
• Read up on how government imposter scams work. Start with ftc.gov/imposters and if you spot a scam, tell the FTC at ReportFraud.ftc.gov.

You can visit the Federal Trade Commission website and learn about other scams to avoid here.

Taxes can be hard to figure out. Scammers count on that confusion to take advantage of people. They prey on the vulnerable and the uninformed. Make sure you are neither this tax season!