How to Detect a Fake or Bogus IRS Agent or Investigation

How to Detect a Fake or Bogus IRS Agent or Investigation

Dealing with the IRS can be scary, especially if someone contacts you claiming you owe money or are under investigation. Unfortunately, scammers often impersonate the IRS to try and get money or personal information from unsuspecting taxpayers. It’s important to know how to spot a fake IRS agent or investigation so you don’t fall victim to these scams. This article will explain what to look for so you can protect yourself.

Common Signs of an IRS Impersonator

Here are some red flags to watch out for:

• They contact you by phone, email, text or social media instead of by postal mail. The IRS usually initiates contact by sending an official letter.
• They demand immediate payment by prepaid debit card, gift card, wire transfer, cryptocurrency or cash. The IRS does not demand these unusual forms of payment.
• They threaten you with arrest, deportation or loss of your business or driver’s license. The IRS cannot legally take these actions.
• They ask for financial information over the phone or via email, like PINs or passwords. The IRS will not request that information.
• They refuse to give you their name, badge number or office location. Real IRS agents will provide this if asked.

Basically, if someone contacts you demanding money right away while threatening dire consequences, it’s likely a scam. The IRS will always send written notices in the mail first before calling about unpaid taxes.

Verify an IRS Caller’s Identity

If you get a call from someone claiming to be the IRS, take steps to verify their identity:

• Ask for their name and badge number. IRS agents will provide this.
• Call them back at the official IRS number: 1-800-829-1040. Scammers often spoof IRS phone numbers.
• Check their office location on the IRS website and call that office to confirm they work there.
• Ask them to mail you written confirmation of what they are saying. IRS protocol is to send written notices first.

Legitimate IRS agents will understand your need to verify their identity. Scammers often get angry or hang up when asked for more information. Never give out personal financial details to someone you haven’t confirmed is an IRS employee.

Watch for These Bogus IRS Communications

Scammers impersonate the IRS in all sorts of communications. Here’s what to watch out for:

Emails and Texts

The IRS does not initiate contact by email or text message. Any IRS-related email or text you get is likely a scam. Telltale signs include:

• Messages riddled with spelling and grammar errors.
• Threats of arrest or legal action if you don’t pay immediately.
• Requests for personal information like social security numbers.
• Links to bogus websites impersonating the IRS.
• Attachments containing malware designed to infect your computer.

Do not reply, click on any links or open attachments from suspicious IRS emails or texts. Report them to the IRS and delete them.

Letters

Scammers also send fake IRS letters by postal mail. Watch for:

• Letters demanding payment within an unreasonable timeframe like 24 hours.
• Misspellings, grammar issues or titles that don’t sound official.
• Threats of legal action or penalties not typically imposed by the IRS.
• Requests for unusual forms of payment like gift cards.
• An IRS logo that doesn’t look quite right.

You can verify a suspicious letter by calling the IRS to confirm they sent it. Only make payments to the IRS by check or money order payable to the “United States Treasury.”

Phone Calls

IRS scammers also like to call taxpayers while impersonating IRS agents. Things to watch out for include:

• Threats of immediate arrest or other scare tactics if you don’t pay right away.
• Requests for payment via unusual methods like gift cards or cryptocurrency.
• Refusal to give you their name, badge number or callback number.
• Lack of knowledge when you ask questions about the tax codes.
• Follow-up calls from other people also claiming to be the IRS or police.

End the call if you suspect it’s a scammer. Call the IRS directly or consult with a tax professional about any supposed tax bill.

Social Media and Websites

Scammers also impersonate the IRS on social media sites like Facebook and create fake IRS websites:

• Fake IRS social media accounts often have little activity or followers.
• IRS impersonators may direct message you asking for personal info or payment.
• Bogus IRS websites have web addresses that differ from the official IRS site.
• Fake sites try to install malware on your computer or harvest personal information.

Avoid clicking on IRS-related social media posts, direct messages or website links unless you’re 100% sure they’re real. Go directly to irs.gov instead.

How to Report IRS Impersonators

If you spot a fake IRS communication, report it:

• Report IRS impersonators to the IRS.
• File a complaint with the Federal Trade Commission at FTC.gov.
• Report email and website scams to the IRS at phishing@irs.gov.
• Contact the Treasury Inspector General for Tax Administration at 1-800-366-4484 or online.

The more information you can provide like names, numbers, email addresses or screenshots, the better. This helps authorities identify and shutdown IRS imposters.

What to Do if You Paid an IRS Impersonator

If you already paid an IRS scammer, take these steps:

• Contact your bank right away and report the payment as fraudulent. Ask them to reverse the transaction if possible.
• Call your local police department to file a report.
• Report the incident to the Federal Trade Commission.
• Notify the IRS by submitting a Form 14157.
• Monitor your accounts and credit reports for signs of identity theft.

You can also consult a tax professional or lawyer to help notify the proper authorities and ensure the fake payment doesn’t impact your taxes.

How to Avoid IRS Scams

Here are some top tips to protect yourself from tax scams:

• Know that the IRS will never contact you by phone, email, text or social media to demand immediate payment. They always send letters first.
• Verify the identity of anyone who claims to be from the IRS. Call them back at the official IRS phone number.
• Don’t click on links, open attachments or give out personal or financial information in response to unsolicited communications.
• Never pay the IRS with gift cards, cryptocurrency, wire transfers or other unusual payment methods.
• Check irs.gov for the latest scam alerts and examples of IRS communications.

Being aware of the tactics scammers use to impersonate the IRS goes a long way in protecting yourself. Report any suspicious communications claiming to be from the IRS. And consult a tax pro if you have any doubts about correspondence you receive!