Avoiding Tax Scams

The Internal Revenue Service (IRS) published Fact Sheet 2022-23 in July. It is designed to help taxpayers avoid tax scams. The IRS has been concerned because of the many phone, text, email and in-person scams in which the fraudsters identify themselves as IRS agents. The IRS almost exclusively contacts taxpayers via a written correspondence.

With the growing number of tax scams, it is important for you to separate legitimate IRS contacts from a scam. Here are some ways to protect yourself from fraudulent IRS communications:

1. Text Messages. The IRS does not send text messages to individuals with links. 513-228-7664 Scammers will frequently send a text message that includes a bogus link. If kswango@LCNB.com you receive an unexpected text from someone identifying themselves from the IRS, you should NOT click on links or open attachments. If you do receive a suspicious text message, you should email a screenshot of it as an attachment to phishing@irs.gov.
2. E-mail. IRS does not ask for personal or financial information with initial contact by e-mail. The standard IRS contact will be through several letters by regular mail. The suspicious e-mail should also be forwarded to phishing@irs.gov. There is a “Report Phishing and Online Scams” page on www.IRS.gov with specific instructions.
3. Individuals Who Owe Tax. If you owe tax to the IRS, you can expect to receive several letters prior to a phone call. The IRS may follow up the letters with a phone call if you have an overdue tax bill, a delinquent tax return, or have failed to make an unemployment tax deposit. The IRS emphasizes it will not demand immediate payment with a debit, gift, or credit card, threaten you with arrest by the local police, or demand tax payments without giving you an opportunity to appeal the claim. Such strategies all indicate that you are receiving communications from a fraudster and not the IRS.
4. In-Person Visits. Generally, IRS officers visit in person only after you have received several notices by mail. An IRS agent may visit for the purpose of education, investigation, and/or appropriate enforcement steps. IRS auditors may mail an initial appointment letter and will generally call to confirm the date prior to a scheduled audit appointment. If you have an in-person visit with an IRS representative, you should always ask for his or her credentials and HSPD-12 card, which is a standard government form of identification.
5. Resolving Tax Issues. The IRS website, www.IRS.gov, provides information to help taxpayers create payment plans. You can pay taxes through an online account with IRS Direct Pay or with your debit or credit card. There are individuals who may qualify for a payment plan or an Offer in Compromise. Again, the IRS will not demand immediate payment, ask for credit or debit card numbers, or threaten to have you arrested by local police. The IRS will always offer an opportunity to appeal and an IRS Appeals Officer may review your case prior to any further action.

Tax related scams have become significantly more frequent and sophisticated. Many of the fraudsters build a relationship with the victim through multiple emails or phone calls prior to theft. Please be careful if you have been contacted by someone claiming to be from the IRS and always, always verify with the IRS before proceeding.