Scams Target Taxpayers as Filing Season Gets Underway

Tax season may just be getting started, but tax scammers have been hard at work already.  The Office of the Maine Attorney General and the Federal Trade Commission (FTC) have gotten thousands of complaints about one kind of scammer in particular — IRS imposters.
 
Here’s how they work:  Scammers posing as IRS officials call and say you owe taxes.   They threaten to arrest you, deport you, revoke your license, or even shut down your business if you do not pay right away.  They may know your Social Security # — or at least its last four digits — making you think it really is the IRS calling.  They also can manipulate caller ID to make it look like the call is coming from Washington, D.C.  You are then instructed to put the money on a prepaid debit card and tell them the number — something no government agency would ask you to do.  Once you comply, you find out it was a scam, and the money is gone.
 
If you owe, or think you owe, federal taxes, call the IRS at 800-829-1040 or go to irs.gov.  IRS workers can help you with your payment questions.  The IRS does not ask people to pay with prepaid debit cards or wire transfers, and does not ask for credit card numbers over the phone.  When the IRS contacts people about unpaid taxes, they usually do it by mail, not by phone.
 
Report IRS imposter scams to the Treasury Inspector General for Tax Administration online or at 800-366-4484, and to the FTC at ftc.gov/complaint.  “Last year we also heard about a number of Mainers who, when they filed with the IRS, discovered someone had fraudulently claimed their tax return already,” said Maine's Attorney General.  “People should file early, always take steps to protect their private information, and review their credit report yearly to see if there has been any unusual activity.”
 
One Maine resident recently recorded his interaction with a scammer claiming to be from the Internal Revenue Service.  The call illustrates several tactics used by phone scammers.  They claimed to be from an entity that the target is familiar with and who he has the potential to owe money.  When challenged about his authenticity, the scammer tried to reassure the target by giving a badge number in order to sound official.  Finally, the payment could only be made by “Green Dot Money Pak,” available at places like WalMart or drug store chains, not by other means.  The scammers are also not easily dissuaded; different people called repeatedly making the same claims in order to make him think they were legitimate.
 
Tax identity theft happens when someone files a phony tax return using your personal information, like your Social Security #, to get a tax refund from the IRS.  It also can happen when someone uses your Social Security # to get a job or claims your child as a dependent on a tax return.  Tax identity theft is the most common form of identity theft reported to the FTC.
 
Tax identity theft victims typically find out about the crime when they get a letter from the IRS saying that more than one tax return was filed in their name, or IRS records show they received wages from an employer they do not know.  If you get a letter like this, do not panic.  Contact the IRS Identity Protection Specialized Unit at 800-908-4490.  Learn more at ftc.gov/taxidtheft.
 
If you have questions about these or other consumer matters, please contact the Consumer Protection Division of the Office of the Maine Attorney General at 800-436-2131 or by e-mail at consumer.mediation@maine.gov.

From: State Representative Susan M.W. Austin Newsletter 2 Feb 2015