One of our clients picked up the phone recently and was told by a man on the other end of the line that he was with the IRS, that our client owed several thousand dollars in back taxes, and said that if the money wasn’t paid, someone would be sent to arrest him. 

This has become a familiar story.  It is the fourth time we have heard it in the past couple of years, and the second time in the past few months.  And a tax attorney of our acquaintance told us that three of her clients have reported such cases within the past week.  We’re not sure what would have happened next if our client had been cooperative.  So far none has been tricked into turning over any cash, at least as far as we are aware.  But all of the victims or potential victims with whom we are familiar were, understandably, very frightened by the experience. 

Here is the rule to go by if you suspect you are talking to one of these people:  First, understand that the IRS always writes to you before they call you.  So, if you have not previously received at least one written notice of tax due from IRS, the call is almost certainly a scam.  After several notices of tax due have been sent, with no reply received, then IRS gets on the phone.  (And of course, if you do receive a notice, you probably should run it by us before paying it in the first place.)

This has become a national problem, and IRS has even established a web page to deal with it:
http://www.irs.gov/uac/Newsroom/IRS-Reiterates-Warning-of-Pervasive-Telephone-Scam

According to the IRS web page, some of the characteristics of the scam calls include:
·         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.

If you have been contacted by a scammer, you may want to refer them to us, and tell them that we are handling your tax matters.  If you feel more spitefully aggressive, you may want to string them along by agreeing to go along with it – but without actually making a payment – and then contacting IRS to let them know you have a crook on the hook.  I’m not sure what they will do, but it couldn’t hurt.  But in no case should you give away personal information that could endanger you or your money.

Whether or not you string the scammer along, you can click the link below to report him to the Federal Trade Commission:
http://apps.irs.gov/app/scripts/exit.jsp?dest=https://www.ftccomplaintassistant.gov/FTC_Wizard.aspx?Lang=en&OrgCode=IRS  

- by Randall Kilgore, CPA