2022 IRS Scams and How to Stay Safe

Have you ever received an alarming phone call from someone claiming to be an agent of the IRS? Tax-related scams are everywhere in this digital age, and you need to know how to spot them–and what to do if it happens to you.

Who We Are
    Welcome to the Hoods Tax Blog, where we bring you valuable information about taxes, accounting, and personal finance to keep you in-the-know. Hoods Tax & Accounting is a locally-owned and operated firm offering tax preparation, accounting, bookkeeping, and QuickBooks services to Goose Creek and the surrounding area. We have been in business since 1988, and still operate with some of the same staff to serve our clients. Our blog is just another part of our dedication to education and excellence in service!

So let’s talk about IRS scams.

What is an IRS Scam?
    An IRS scam is a scam operated by a person or group of people claiming to be acting on behalf of the IRS. These scams come in many forms, like a very official-looking email from “the IRS,” or a phone call from an “IRS agent,” or even a “local sheriff’s deputy.” They may be claiming to need more information or verification from you, or claiming that you have unpaid taxes. In some cases, their scam may relate to a specific piece of legislation, tax rebate, or stimulus program. Whatever form the scam appears in, the underlying goal is to convince you that they are legitimate, and get information or money out of you.

What you need to know:
    The actual Internal Revenue Service takes great strides to ensure their actions do not overlap with the behaviors of these scammers. To this end, the IRS will never call, email, or text you without prior notice. The first form of contact from the IRS for any issue will always be by mail. 
If you have not already received a notice in the mail, do not engage with any other form of communication claiming to be from the IRS. If you do receive a letter in the mail that claims to be from the IRS, you should still be cautious. The IRS has an online resource to help you verify your letter, and figure out the next steps you should take if it is the real thing.

What are the most common IRS scams?
    Since 2020, COVID-19 pandemic-related scams have remained common. If you receive an email or text claiming to offer new pandemic relief funds, or claiming you have a pending stimulus payment that requires more information to release, do not open it. 
    Another common scam to watch out for is a phone scam in which someone calls and claims to be an IRS agent, and tells you that you have an unpaid balance on your taxes. These calls can be especially scary, and are often used to target older taxpayers who can be easily threatened into complying if they are alone and feel vulnerable. This phone scam can become very threatening, and often the caller will get aggressive or angry if their target questions their validity or does not comply. They will often claim that there is a sheriff’s deputy on the way to their target’s home who will arrest the target if they do not comply. Sometimes the caller will actually claim to be a sheriff’s deputy themselves, and will make threats of arrest. 
    Other common scams come in the form of emails or text messages, most often asking you to click a link or provide personal information. These are known as “phishing” scams, and are common even beyond the scope of IRS scams. If you ever receive any emails or texts claiming to be from a trusted source, it is always best to take caution and take steps to verify the validity. The FTC has a great article on how to recognize and avoid phishing scams here.

What should I do if I have been scammed?
    If you find that you have fallen victim to one of these IRS scams, the first thing to know is that there is nothing to be embarrassed about. Many victims of scammers will avoid telling anyone that they have been targeted because they are embarrassed that they fell for it, but the truth is that these scammers are experienced and know exactly what to say and do to convince you to trust them. Thousands of people have lost money to IRS scams, and even more have given up their personal information and put themselves at risk of identity theft. 
    If you have been scammed, the first thing you should do is report it to the authorities. There are several ways to do this, depending on which type of scam it was. If you received a phishing email, forward it to [email protected], then report it to the FTC at https://reportfraud.ftc.gov/. If it was a phone scam, you will still report it to the FTC at https://reportfraud.ftc.gov/. If you received a phishing text message, simply forward it to SPAM (7726). All of these steps can be completed whether the scammer was successful or not, so be sure to report the scams even if you recognize them immediately as scams.
    If you believe that your personal information was stolen in a scam, go to https://www.identitytheft.gov/Info-Lost-or-Stolen. This will give you information on how to protect yourself against identity theft. If a scammer has taken money from you, be sure to file a police report with your local authorities.

How do I stay safe from scammers?
    Here are a few additional steps that you can take to stay safe:

• Register your phone number with the National Do Not Call Registry.
• If a phone call seems suspicious, hang up.
• If an email seems suspicious, call the trusted source it claims to be from and verify that they sent it. This goes for text messages as well.
• Don’t trust caller ID. Scammers can “spoof” their phone number to make it show up as a number you trust on your caller ID.
• If a caller is trying to pressure you into taking action immediately instead of taking time to verify their claims, be wary, and do not give in to pressure. It is always better to take your time and get more information.
• Avoid answering any questions on the phone with “yes.” Scammers will record this and use it as proof that you agreed to credit card charges or fraudulent purchases.
• Don’t provide personal information over the phone, unless it is a trusted source that you have properly verified.
• Be aware that just because a caller is able to provide you with your personal details or an account number, this does not mean that they are legitimate. Seek further verification.​

​The Bottom Line
    Scammers are everywhere, and you are bound to be targeted at some point. IRS scams are especially common, and it is important to know the facts so that you can protect yourself and identify a scam when it arises. Always err on the side of caution and verify everything!