How to Detect IRS Deception and Intimidation Tactics

How to Detect IRS Deception and Intimidation Tactics

Dealing with the IRS can be scary. You may get a call or letter that seems threatening and makes you worry you’re in trouble with the taxman. But often, these communications are scams by criminals impersonating the IRS to trick you into sending money or giving personal information.

Luckily, by understanding common IRS scams and intimidation tactics, you can protect yourself. This article will explain how to spot IRS scams and frauds, your rights when dealing with the real IRS, and how to report shady activity.

Watch Out for These Common IRS Scams

Here are some typical ways scammers try to scare people into thinking they owe the IRS money:

• Fake calls demanding immediate payment and threatening arrest or deportation if you don’t pay.
• Leaving urgent voicemails with a callback number.
• Sending emails requesting personal information like Social Security numbers.
• Pretending to be from the IRS and saying you qualify for a big refund if you provide bank account details.
• Offering to settle a supposed IRS debt for less than what you owe (if you pay the scammer).

Often, these scams will include some real info like your name, address or the last four digits of your Social Security number to sound legit. But the IRS doesn’t call out of the blue demanding money without ever mailing you notices first.

Watch for These Red Flags

Here are some signs a supposed IRS communication is probably a scam:

• They initiate contact by phone call or email instead of postal mail.
• They demand immediate payment via wire transfer or gift card.
• They threaten you with arrest, license revocation or deportation.
• They request sensitive info like Social Security numbers or bank account details.
• Their names sound fake or they refuse to give names.
• The IRS logo looks off or the email address is from a non-government domain.

Basically, anytime someone contacts you demanding money right away while threatening consequences, be suspicious. The real IRS doesn’t use intimidation or make immediate payment demands without notice.

You Have Rights When Dealing with the IRS

Even when communicating with the real IRS, you have rights that protect you from undue threats or deception. Some key rights include:

• The right to professional and courteous service.
• The right to be informed about IRS decisions affecting you.
• The right to appeal IRS decisions and negotiate repayment plans.
• The right to consult a tax pro or attorney.
• The right to privacy and confidentiality.

It’s against the law for IRS employees to harass or intimidate taxpayers. Any threatening or deceptive behavior should be reported. The real IRS will work with you on fixing tax issues.

How to Report IRS Scams and Fraud

If you suspect a tax scam, report it right away to the proper authorities, including:

• Treasury Inspector General for Tax Administration (TIGTA) – Report scam online or call 800-366-4484
• Federal Trade Commission – Report fraud online or call 877-382-4357
• IRS – Forward scam emails to phishing@irs.gov
• FBI – File a complaint online or call your local FBI office

The more information you can provide like phone numbers, email addresses or screenshots, the better. This helps authorities identify and stop scammers.

How to Handle Communication from the Real IRS

If you get a letter or notice from the actual IRS, don’t panic. Here are some tips:

• Open it right away so you can act on time-sensitive issues.
• Read it carefully to understand what specific issue they’re contacting you about.
• Compare any amounts they say you owe to your own tax records.
• Make sure the taxpayer ID on the letter matches yours.
• Contact a tax pro if you need help responding.
• Don’t ignore it – work to resolve issues quickly and keep copies for your records.

You’ll typically have at least 30 days to respond to any IRS inquiry. And you can always call the IRS for clarification or to request more time. The key is responding promptly and maintaining clear communication.

Avoid Future IRS Issues

While scams happen, you can reduce chances of actually owing the IRS back taxes or penalties by:

• Always filing your tax return on time, even if you can’t pay in full.
• Paying as much as you can with your tax return and getting on a payment plan for the remainder.
• Having enough withheld from your paycheck throughout the year.
• Making quarterly estimated payments if you have freelance income without withholding.
• Keeping detailed tax records in case of an audit.

Even if you do end up owing, the IRS will work with you. Just stay calm, know your rights, only communicate through official IRS channels, and seek help from a tax pro if needed. With caution and preparation, you can detect any IRS scams and handle the real thing confidently!