As tax season approaches, scams targeting individuals who may be feeling stressed or anxious about their finances are on the rise. The Federal Trade Commission (FTC) has reported an increase in scam calls from individuals claiming to represent the Internal Revenue Service (IRS). These calls often tell people they owe back taxes along with heavy interest and penalties. After the initial call, scammers may connect victims with supposed tax debt relief agents who then demand payment either for the fake debt or for services to resolve it.
The IRS reminds taxpayers that its first contact is always by mail. According to official guidance: “If you get a phone call, email, or text from the IRS it is a scam. (There may be some situations where you’re already in contact with the IRS about a known issue when a representative will call you, but you will always get first notification of a tax problem by mail.) But even a letter could be a scam. If you get a call, email, or text claiming to be from the IRS, ignore it and delete it. If you get a letter from them and have any doubt that it is real, call their main help line at 800-829-1040 or visit www.IRS.gov to find out if the contents of the letter are legitimate.”
Another warning sign involves payment methods. “Remember, the IRS will never ask you to pay for anything with cryptocurrency or gift cards. If they threaten to ‘cancel your social security number’ or arrest you, you know it’s a scam,” according to officials. While arrests can happen in cases of tax fraud, taxpayers would receive several notifications and opportunities to address any errors before such action would occur.
Some legitimate tax relief companies also engage in practices that can mislead consumers. These businesses promise negotiation with the IRS on behalf of clients and claim they can reduce debts or halt collections. However, only direct communication with the IRS can resolve such issues; these companies often charge high fees without providing additional benefit.
For those who owe money or anticipate trouble paying upcoming taxes, authorities recommend contacting the IRS directly for assistance in setting up payment plans or negotiating settlements through options like an offer in compromise.
“Taxes can be scary, but don’t let your anxiety make you fall victim to a scammer or an unscrupulous business,” said agency representatives.
