Tax Scams

February 17, 2012

Don’t Get Duped By The Dirty Dozen Tax Scams

The IRS has broadcasted a warning to all taxpayers to be alert for income tax scams. Although these tax scams are around all year, they peak around tax filing season. The so-called dirty dozen tax scams range from identity fraud to tax preparer fraud.

“Taxpayers should be careful and avoid falling into a trap with the Dirty Dozen,” said IRS Commissioner Doug Shulman. “Scam artists will tempt people in-person, on-line and by e-mail with misleading promises about lost refunds and free money. Don’t be fooled by these scams.”

Taxpayers need to understand that tax scams could lead to tax penalties, interest charges and even criminal prosecution.

Here are the Dirty Dozen Tax Scams the IRS is warning you about (republished verbatem from the IRS website.

  1. Identity Theft
    Topping this year’s list Dirty Dozen list is identity theft. In response to growing identity theft concerns, the IRS has embarked on a comprehensive strategy that is focused on preventing, detecting and resolving identity theft cases as soon as possible. In addition to the law-enforcement crackdown, the IRS has stepped up its internal reviews to spot false tax returns before tax refunds are issued as well as working to help victims of the identity theft refund schemes.Identity theft cases are among the most complex ones the IRS handles, but the agency is committed to working with taxpayers who have become victims of identity theft.

    The IRS is increasingly seeing identity thieves looking for ways to use a legitimate taxpayer’s identity and personal information to file a tax return and claim a fraudulent refund.

    An IRS notice informing a taxpayer that more than one return was filed in the taxpayer’s name or that the taxpayer received wages from an unknown employer may be the first tip off the individual receives that he or she has been victimized.

    The IRS has a robust screening process with measures in place to stop fraudulent returns. While the IRS is continuing to address tax-related identity theft aggressively, the agency is also seeing an increase in identity crimes, including more complex schemes. In 2011, the IRS protected more than $1.4 billion of taxpayer funds from getting into the wrong hands due to identity theft.

    In January, the IRS announced the results of a massive, national sweep cracking down on suspected identity theft perpetrators as part of a stepped-up effort against refund fraud and identity theft. Working with the Justice Department’s Tax Division and local U.S. Attorneys’ offices, the nationwide effort targeted 105 people in 23 states.

    Anyone who believes his or her personal information has been stolen and used for tax purposes should immediately contact the IRS Identity Protection Specialized Unit. For more information, visit the special identity theft page at www.IRS.gov/identitytheft.

  2. Phishing
    Phishing is a scam typically carried out with the help of unsolicited email or a fake website that poses as a legitimate site to lure in potential victims and prompt them to provide valuable personal and financial information. Armed with this information, a criminal can commit identity theft or financial theft.If you receive an unsolicited email that appears to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), report it by sending it to phishing@irs.gov.

    It is important to keep in mind the IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels. The IRS has information that can help you protect yourself from email scams. More on Don’t Get Duped By The Dirty Dozen Tax Scams

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December 8, 2008

Beware of New IRS eMail Scams

According to ABC News in Denver, Colorado, E-mails and letters that appear to be from government agencies are among the latest round of scams by criminals hoping to obtain money or personal information from victims.

“It was very convincing. It had an official IRS letterhead,” said Craig Schroetlin, pastor of Daystar Church in Aurora.

The e-mail Schroetlin received looked official because it was copied almost verbatim from the Internal Revenue Service Web site.

“It had to do with the tax incentive checks President Bush had signed,” he said.

Schroetlin had already received his tax incentive, but said the e-mail was so convincing it made him think twice.

“It was extremely official looking,” he said.

Had Schroetlin clicked on the alleged IRS link contained in the e-mail, it would have led him to forms the scammers use to collect personal information from their victims.

“It’s people preying on the needy, on the uninformed,” he said.

Wanda Potthoff was almost scammed at work.

“It looked like a secretary of state document, that it had come from them,” she said, “My first reaction was, ‘Why do I have to pay $150?’ ”

A company calling itself Colorado Corporate Compliance tells small business owners they need to file a report and pay a fee or face consequences from the Secretary Of State’s office.

“I think if I hadn’t already filed the corporate report that year I might have gone ahead and done it,” Potthoff said.

Call7 tracked the address provided for the phony company and found it lead to a UPS store in Denver, where the would-be scammers kept a post office box.

“It makes me angry that people are trying to take advantage of people just to line their own pockets,” Potthoff said.

Fraud expert Mason Finks said scammers blend real elements into their phony documents to further confuse consumers and turn them into victims.

“The only difference is this half line of text,” said Finks comparing a phony IRS e-mail to a legitimate one.

“Each of those was linked to a real portion of the IRS Web site,” he said.

Finks has recently seen phony e-mails from the FBI and other government agencies.

“Seldom if ever will a government agency send you an e-mail saying you need provide information or you’ve won something. It just doesn’t work that way. It’s done through the mail,” Finks said.

He also pointed out another twist- scammers spoofing caller I.D.

Finks said in a recent scam the callers paid for a third-party service to change their caller I.D. to read “Douglas County Government.”

He said the caller told the potential victim a jury summons had been returned and that they needed the person to verify all their contact information.

Finks said consumers should always be suspicious and verify every request with the agency themselves or with a local law enforcement agency before taking any action.

The bottom line is this:  The IRS will never ask for payment via an e-mail – PERIOD!

For more information on fraud prevention or to report a scam contact the irs or logon to www.irs.gov

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November 20, 2008

IRS Warns of e-mail Phishing Scam

The Internal Revenue Service is warning the public of a scam that could be lurking in your e-mail.

IRS spokesman David Stewart said “very official” looking e-mails alert people about a refund owed to them, but when it’s opened it can be “dangerous to you and your computer.”

“We’re getting reports of people getting an e-mail that appears to come from the IRS and tells recipients to respond to get their 2008 Economic Stimulus Refund,” Stewart said.

According to Stewart, if you have accessed a link or attachment in the bogus e-mail, you may have allowed the scammer to download malicious software to your computer and you should immediately scan for viruses and spyware, plus be alert for suspicious activity on your financial accounts.

“If you have actually responded to a scam e-mail by giving out your private information, you should immediately take steps to prevent identity theft. You may now be a prime target,” Stewart said.

Stewart said there are three things the IRS needs people to remember:

• The IRS never sends unsolicited e-mails about your taxes.

• If you get a scam e-mail, don’t access any links or attachments.

Anyone who receives suspicious e-mails addressed from the IRS should forward them to the IRS at phishing@irs.gov.

For more information about tax scams and a list of tax scams updated each year by the IRS, go to www.irs.gov. The IRS also provides information on its Web site to help taxpayers protect their personal and financial information.

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