Tag: Security

27 Apr 2018

GOT AN UNEXPECTED TAX RETURN?

GOT AN UNEXPECTED TAX RETURN?
And a Request to Return It

Pearson-April2

 

The latest con launched by the fraudsters is the  “IRS Refunds” scam. The cybercriminals either steal client data from tax preparers or trick people into clicking on an email link or attachment to a fake page where thieves attempt to steal sensitive information.

Once the taxpayer’s data has been secured, the criminals file fraudulent tax returns that often direct tax refunds to be deposited to the taxpayer’s bank account.

Next, the crooks typically contact the victims by phone demanding that the money be returned. Their “cover” is to pose either as IRS agents or an IRS-authorized collection firm.

In another scenario, the taxpayer may receive a recorded call charging the taxpayer with fraud, threatening the victim with arrest and a “blacklisting” of their Social Security number. The recorded voice then tells the taxpayer to call a number for information on returning the refund. See IR-2018-27.

These are examples of current various tactics the thieves use to reclaim the refund from the taxpayers. Be alert! Their versions of the scam may continue to evolve.

The IRS has repeatedly confirmed that they will not:

  • Call to demand immediate payment over the phone, nor call about delinquent taxes without first mailing you several bills.
  • Call or email you to verify your identity by asking for personal and financial information.
  • Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
  • Require you to use a specific payment method, e.g. a prepaid debit card, etc.
  • Ask for credit or debit card numbers via phone or email.
  • Threaten to have you arrested or other penalty for not paying.

As directed by the IRS …

If you get a phone call from someone claiming to be from the IRS and asking for money here’s what you should do:

  • Do not give out any information. Hang up immediately.
  • Contact TIGTA to report the call. Use their IRS Impersonation Scam Reporting web page or call 800-366-4484.
  • Report it to the Federal Trade Commission by visiting FTC.gov and clicking on “File a Consumer Complaint.” Please add “IRS Telephone Scam” in the notes.
  • If you think you might owe taxes, call the IRS directly at 1-800-829-1040.

More information on how to report phishing or phone scams is available on IRS.gov.

27 Apr 2018

THE 2018 IRS DIRTY DOZEN TAX SCAMS

THE 2018 IRS DIRTY DOZEN TAX SCAMS
And the “Winners” are…

Tax SCAMS

 Caution! Fraudsters at Work

“We continue to work hard to protect taxpayers from identity theft and other scams,” said IRS Commissioner John Koskinen. “Taxpayers can and should stay alert to new schemes which seem to constantly evolve. We urge them to do all they can to avoid these pitfalls – whether old or new.”

For the fourth year, the service again offers its Dirty Dozen scams including some old, some new and a few either wily or routine. What follows is a recap of the top 12 nasty ploys that the bad guys use to steal taxpayers personal information, scam them out of money or talk them into engaging in questionable (even illegal!) behavior with their taxes.

Thanks to the IRS, you can view a video version of this story Dirty Dozen – English, or just read on!

  1. Phishing: Taxpayers need to be on guard against fake emails or websites looking to steal personal information. The IRS will never send taxpayers an email about a bill or refund out of the blue. Don’t click on one claiming to be from the IRS. Be wary of strange emails and websites that may be nothing more than scams to steal personal information
  2. Phone Scams: Phone calls from criminals impersonating IRS agents remain an ongoing threat to taxpayers. The IRS has seen a surge of these phone scams in recent years as scam artists threaten taxpayers with police arrest, deportation and license revocation, among other things.
  3. Identity Theft: Taxpayers need to watch out for identity theft especially around tax time. The IRS continues to aggressively pursue the criminals that file fraudulent returns using someone else’s Social Security number. Though the agency is making progress on this front, taxpayers still need to be extremely cautious and do everything they can to avoid being victimized.
  4. Return Preparer Fraud: Be on the lookout for unscrupulous return preparers. The vast majority of tax professionals provide honest high-quality service. But there are some dishonest preparers who set up shop each filing season to perpetrate refund fraud, identity theft and other scams that hurt taxpayers.
  5. Fake Charities: Be on guard against groups masquerading as charitable organizations to attract donations from unsuspecting contributors. Be wary of charities with names similar to familiar or nationally known organizations. Contributors should take a few extra minutes to ensure their hard-earned money goes to legitimate and currently eligible charities. IRS.gov has the tools taxpayers need to check out the status of charitable organizations.
  6. Inflated Refund Claims: Taxpayers need to be on the lookout for anyone promising inflated refunds. Be wary of anyone who asks taxpayers to sign a blank return, promises a big refund before looking at their records, or charges fees based on a percentage of the refund.
  7. Excessive Claims for Business Credits: Avoid improperly claiming the fuel tax credit, as well as avoid misuse of the research credit.
  8. Falsely Padding Deductions on Returns: Taxpayers should avoid the temptation of falsely inflating deductions or expenses on their returns to under pay what they owe or possibly receive larger refunds.
  9. Falsifying Income to Claim Credits: Don’t invent income to erroneously qualify for tax credits, such as the Earned Income Tax Credit.
  10. Frivolous Tax Arguments: Promoters of frivolous schemes encourage taxpayers to make unreasonable and outlandish claims even though they are wrong and have been repeatedly thrown out of court. The penalty for filing a frivolous tax return is $5,000.
  11. Abusive Tax Shelters: The IRS is committed to stopping complex tax avoidance schemes and the people who create and sell them.
  12. Offshore Tax Avoidance: There have been a recent string of successful enforcement actions against offshore tax cheats. Taxpayers are best served by coming in voluntarily and getting caught up on their tax-filing responsibilities.

Taxpayers are encouraged to review the list in a special section on IRS.gov and be on the lookout for these con games.