Origins: In March 2014, the IRS reported con artists impersonating their agents had stolen more than
In it, more than 20,000 people from nearly every state were successfully defrauded by fake tax agents who told victims they owed taxes and demanded payment by prepaid debit card or wire transfer. Those masquerading as IRS agents further informed their targets that if they refused to comply with their demands for immediate payment they could be arrested, deported, or lose their business or driver's licenses.
Reports of the scam, which has been running since August 2013, continue to increase. The calls are made to look as if they originate with the IRS, with that agency's name appearing on the caller IDs of intended targets' phones. Often those conducting the fraud know the last four digits of their targets' Social Security numbers. Some of the attempts to defraud also follow up with false IRS emails and phone calls in which the con artists pretend to represent the police or motor vehicles officials.
Per the IRS's description of this fraud:
- Scammers use fake names and IRS badge numbers. They generally use common names and surnames to identify themselves.
- Scammers may be able to recite the last four digits of a victim’s Social Security Number.
- Scammers spoof the IRS toll-free number on caller ID to make it appear that it’s the IRS calling.
- Scammers sometimes send bogus IRS emails to some victims to support their bogus calls.
- Victims hear background noise of other calls being conducted to mimic a call site.
- After threatening victims with jail time or driver’s license revocation, scammers hang up and others soon call back pretending to be from the local police or DMV, and the caller ID supports their claim.
Says Treasury Inspector General for Tax Administration Russell George, "If someone unexpectedly calls claiming to be from the IRS and uses threatening language if you don't pay immediately, that is a sign that it really isn't the IRS calling."
The IRS advises:
- If you know you owe taxes or you think you might owe taxes, call the IRS at 1.800.829.1040. The IRS employees at that line can help you with a payment issue — if there really is such an issue.
- If you know you don’t owe taxes or have no reason to think that you owe any taxes (for example, you’ve never received a bill or the caller made some bogus threats as described above), then call and report the incident to the Treasury Inspector General for Tax Administration at 1.800.366.4484.
- If you’ve been targeted by this scam, you should also contact the Federal Trade Commission and use their “FTC Complaint Assistant” at FTC.gov. Please add "IRS Telephone Scam" to the comments of your complaint.