How to Spot IRS Tax Relief Scams and Avoid Them

How to Spot IRS Tax Relief Scams and Avoid Them

Dealing with the IRS can be scary. I get it. I’ve been there myself. But unfortunately there are a lot of scammers and fraudsters out there trying to take advantage of people’s fear of the IRS. Don’t worry though, I’m here to help you spot those IRS scams and avoid becoming a victim.

Phone Call Scams

One of the most common IRS scams is through phone calls. Here’s what to watch out for:

• Calls demanding immediate payment – The IRS will always mail you a letter first before calling about owed taxes. They won’t cold call demanding money right away.
• “You’re being sued” threats – Scammers will claim legal action is about to be taken against you. The IRS does not threaten immediate lawsuits like this.
• Threats of arrest or deportation – Similar to the lawsuit threats, scammers will say police are on the way to arrest you or that you’ll be deported. Again, not how the real IRS operates.
• Requests for unusual payment types – The IRS will never demand payment through things like gift cards, wire transfers, cryptocurrency, etc. Major red flag!
• Asking for personal info – Whether it’s over the phone, email, text, etc., the IRS will not reach out and ask for your sensitive info like social security number.

Bottom line – any surprise call demanding money or personal info is almost certainly a scam. Safest bet is to hang up right away.

Email and Text Message Scams

Scammers also use email, text messages, and social media to impersonate the IRS. Watch for:

• Emails with IRS logo and forms – Scammers copy logos and text right from the IRS website to make emails look legit.
• Phishing for info – Emails and texts asking you to verify or provide personal info like your social security number.
• Links and attachments – Don’t click links or open attachments claiming to be from IRS. Could download malware.
• Threats of penalties – Emails threatening penalties or legal action if you don’t click their links and provide info.

As a rule of thumb, the IRS will not initiate contact via social media, email, or text like this. Anything asking for personal info or money is a scam.

How to Report IRS Scams

If you receive a suspicious call, email, or text claiming to be the IRS, take steps to report it:

• Report to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484 or online.
• Forward scam emails to phishing@irs.gov – include “IRS Phone Scam” in subject line.
• File a complaint with the Federal Trade Commission here.
• Report robocalls to the Michigan Attorney General.

The more these scams get reported, the better chance we have of catching the crooks behind them. Don’t let them get away with it!

What to Do if You Fall for a Scam

If you unfortunately did fall for one of these IRS scams, here are some steps to take right away:

• Contact your bank or credit card company – Have them close any compromised accounts and reverse any fraudulent transactions if possible.
• Place a fraud alert – This will help protect your credit from identity theft.
• Monitor your credit – Keep an eye out for any suspicious activity.
• Report identity theft – File a report with the FTC here and get an ID theft recovery plan.
• Change passwords – Update passwords on your email, bank, and other accounts that may have been compromised.

The earlier you act, the better chance you have of minimizing damage. And don’t be afraid to ask for help – I’m always here to help out as much as I can!

How to Avoid IRS Scams in the First Place

Here are some tips to avoid becoming a victim of an IRS scam in the first place:

• Know how the IRS contacts taxpayers – They almost always mail a letter first.
• Don’t answer calls from unknown numbers – Let them leave a voicemail first so you can verify it’s legit.
• Don’t click links in unexpected emails/texts – Go directly to IRS.gov instead.
• Always verify before providing info – Don’t give out your SSN or other info without verifying who you’re talking to.
• Use security software – Make sure your computer has updated antivirus software.
• Review your credit report – Monitor your report regularly for any suspicious activity.

Following these tips will help prevent you from becoming a victim in the first place. And of course, reach out to me if you ever have any questions! I’m always happy to help.

Dealing with the IRS can be intimidating but knowing how to identify scams will help protect you. Don’t hesitate to reach out to me if you need any help avoiding tax scams or resolving IRS issues. I’m here for you!