Fraud Tip of the Day - April 14
IRS Debt Collection Scams
Con artists are posing as the IRS in debt collection schemes designed to trick people into giving them their personal or financial information.
The IRS warns that as it begins collecting debts owed, taxpayers need to be aware of con artists that pretend to be the IRS in hopes they can trick people into divulging their personal and financial information. These scams can occur over the phone, through email, in person and through the internet.
The IRS has a program that uses private sector debt collection agencies to contact some taxpayers regarding unpaid back taxes as part of. The IRS has taken several steps to alert taxpayers identify these collectors as legitimate and better identify the debt collection scams.
How the IRS Alerts Taxpayers:
(Taken from the IRS website in January 2009 http://www.irs.gov/newsroom/article/0,,id=161301,00.html)- Taxpayer notification. Taxpayers that are a part of this private debt collection program will be aware of their participation in this program before being communicated to by a private debt collector. If you haven't received a notification from the IRS about this program, be skeptical of anyone who contacts you claiming to represent the IRS to collect debts on their behalf.
- A letter from the IRS. The notification mentioned above will come in the form of a letter from the IRS. This letter indicates that its recipient is part of the IRS' private debt collection initiative. The letter will include the name of the debt collector each taxpayer will be contacted by.
- A letter from the debt collection agency. Taxpayers that have been notified about their participation in the program will then receive a second letter from the debt collection agency assigned to them. This letter is to inform taxpayers that they will soon be contacted by the agency regarding their unpaid taxes.
- Checks are payable to the US Treasury. All checks sent will be payable to the US Treasury rather than an individual or business. The collection agency will let you know which address to use when you mail in your payments. Collection agencies working with the IRS will never ask you to send cash or a check made out to an individual.
- Contact the IRS. If in doubt, check IRS.gov or call the IRS at 800-829-1040 for more information.
According to the IRS, taxpayers need to remember that "the IRS never asks people for the PIN numbers, passwords or similar secret access information for their credit card, bank or other financial accounts. If in doubt about someone claiming to be from the IRS or working on behalf of the IRS, call the agency's toll-free help line at 800-829-1040."
What's worse than getting ripped off by a scam? Getting conned by a tax scam then going to jail for tax fraud!
