Consumer Affairs Warns About IRS Scammers Threatening Residents

As Tax Day (April 18) approaches, the Tennessee Department of Commerce and Insurance’s (TDCI) Consumer Affairs Division is warning Middle Tennessee consumers to be on alert for swindlers who make unsolicited phone calls to consumers and claim to represent the IRS. Once the scammers have unsuspecting consumers on the phone, they may threaten customers with legal action unless they receive a payment or reveal personal information.

Unfortunately, these IRS phone scams are growing in scope and their financial impact on consumers. The Treasury Inspector General for Tax Administration (TIGTA) reported last year reports of more than 736,000 scam contacts since October 2013. Nearly 4,550 victims have collectively paid over $23 million as a result of these scams.

“Tennesseans should be on high alert during tax season as tax scammers step up their unscrupulous efforts to steal consumers’ money and their personal information,” said Tennessee Department of Commerce & Insurance Deputy Director Bill Giannini.

Scammers have targeted several different customer demographics, including small businesses, elderly and non-English speaking customers.

To avoid becoming a victim, follow these simple tips to protect your money and your personal information:

– Scammers make unsolicited calls.  Thieves call taxpayers claiming to be IRS officials. They demand that the victim pay a bogus tax bill. They con the victim into sending cash, usually through a prepaid debit card or wire transfer. They may also leave “urgent” callback requests through phone “robo-calls,” or via phishing email.

– Callers try to scare their victims.  Many phone scams use threats to intimidate and bully a victim into paying. They may even threaten to arrest, deport or revoke the license of their victim if they don’t get the money.

– Scams use caller ID spoofing.  Scammers often alter caller ID to make it look like the IRS or another agency is calling. The callers use IRS titles and fake badge numbers to appear legitimate. They may use the victim’s name, address and other personal information to make the call sound official.

– Cons try new tricks all the time.  Some schemes provide an actual IRS address where they tell the victim to mail a receipt for the payment they make. Others use emails that contain a fake IRS document with a phone number or an email address for a reply. These scams often use official IRS letterhead in emails or regular mail that they send to their victims. They try these ploys to make the ruse look official.

The IRS will NEVER:

– Call you to demand immediate payment. The IRS will not call you if you owe taxes without first sending you a bill in the mail.

– Demand that you pay taxes and not allow you to question or appeal the amount you owe.

– Require that you pay your taxes a certain way. For instance, require that you pay with a prepaid debit card.

– Ask for your credit or debit card numbers over the phone.

– Threaten to bring in police or other agencies to arrest you for not paying.

For more information, visit “Tax Scams and Consumer Alerts” on IRS.gov.

For more consumer resources, visit www.tn.gov/consumer.

– See more at: http://www.tn.gov/news/39204#sthash.4MkmyNf9.dpuf