How to Safeguard Against IRS Tax Scams

Many taxpayers have encountered individuals impersonating Internal Revenue Service (IRS) officials - in person, over the telephone, and via email. Remember, these scams can be costly and stressful. It's crucial to understand how the IRS contacts taxpayers and how to identify legitimate communication. This guide will help you stay informed and protect yourself from these tax scams.

Understanding IRS Communication

It is essential to know that the IRS does not:

Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card, or wire transfer. Demanded that you pay taxes without the opportunity to question or appeal the amount you are said to owe. Threaten to bring in local police, immigration officers, or other law enforcement to have you arrested for not paying. The IRS cannot revoke your driver's license, business licenses, or immigration status.

These threats are common tactics used by scam artists to trick victims into buying into their scheme.

Best Practices to Avoid IRS Scams

The best way to avoid IRS tax scams is to not communicate with anyone who calls and claims to be from the IRS. Simply hang up. The IRS will not call you unless they have been working with you on a tax debt for a while or if they ever do call, they will first send a bill through the mail.

Do not open any emails from the IRS. If you receive any emails that claim to be from the IRS, forward them to for further action.

Protect Your Personal Information

Guard your personal information and that of your children. If you think someone has your information, go to the official IRS website for a lot of good information on who to call and what to do. Filing your tax returns electronically is a good idea as well. If someone has filed a tax return using your identity or that of anyone in your family, the IRS will reject your tax return, and you will know right away.

Engage Professionals for Tax Preparation

The absolute best way is to have a Certified Public Accountant (CPA) or Enrolled Agent (EA) prepare your returns. If contacted by anyone claiming to be from the IRS, refer them to your accountant. If you receive any correspondence allegedly from the IRS, forward it immediately to your accountant. If you are contacted by anyone in person, refer them to your accountant and say no more. If they ask who your accountant is, you politely tell them that they signed your return and so it is a matter of record. Don't tell them who your accountant is, the IRS already knows because they signed on the return. Close the door in their face. Do not let them enter your home or business without your accountant and/or attorney present.

Do not let them intimidate you. Chances are 98.9% that they are fraudsters. Any inquiries from alleged IRS people via email are also bogus. Do not open the emails; delete upon receipt as the attachments are often malware ridden, and the whole point of the email is to get you to open the attachment to infect your computer.

Virtual Scam Detectors

Virtually all alleged phone contacts from the IRS are also bogus. Hang up immediately; do not engage them, and do not give them any information except the click of you hanging up.

By following these guidelines, you can significantly reduce the risk of falling victim to IRS tax scams. Always be cautious and verify any communication you receive - especially over the phone or through email. Stay informed, stay vigilant, and stay safe from these scams.