On Monday, August 6 the news hit the WKBN website. In Broadman, Ohio, police were warning of a tax scam besieging the area.

Twenty-five calls on one Monday morning will definitely raise the red flag. That’s how many complaints flooded Boardman police about the scam.

The tax scam involved phone calls received from a 434 area code. It’s well known that technology exists to “spoof” any telephone number (even your own, which really causes a moment’s pause!). So although Virginia is home to the area code, the calls can be coming from anywhere.

In fact, the Chief of Police, Todd Werth, told the TV station that the calls are likely coming from overseas.

What is the Tax Scam?

The folks who received the calls from the tax scammers were told they owed money to the IRS. They were instructed to send the money right away… using a wire transfer or a gift card.

And if they didn’t pay? The scammers told victims they’d be arrested, their driver’s license would be suspended, or their businesses shut down.

Furthermore, the tax scammers threatened to be at the victim’s front door within 24 if payment was not received. There were reports that these scammers became “hostile and insulting” as the calls went on.

Other victims were actually informed that they had a refund coming. Why would tax scammers do that? To get you to share personal information. It’s good to note here that the IRS already has your information and knows where to send a refund if one is due. They don’t need your address or your bank account… and wouldn’t ask for it over the phone.

In some cases, the calls weren’t answered and so the tax scammers left “urgent callback requests.”

How Do You Know if It is a Tax Scam?

Having some knowledge of how the IRS operates can help you protect yourself (and others, should you get calls from elderly relatives).

You should keep the following in mind:

• First, the IRS usually initiates contact by mail. They will not call or show up at your door as their initial warning that you owe tax.
• Second, they will never demand that you pay the immediately over the phone. Instead, you will receive several notices in the mail, the first of which will let you know to contact them if you do not agree that you owe the balance. These notices also give instructions on how to set up a payment plan in the event that you can’t pay the tax you owe at once.
• Third, the IRS will not ask you to verify your identity using personal information or ask for your credit card or debit card numbers (and especially not over the phone).
• Fourth, the IRS does not specify that you must pay them in a specific method. The tax scammers asked for a wire transfer or payment by gift card. That should make the hairs on the back of the necks of any would-be victim stand up.
• Finally, the IRS will not threaten to have you arrested or take other such extreme action if you can’t pay them immediately. Again, you will be informed by mail of what you owe and have the opportunity to appeal their findings.

When in doubt, hang up. A quick call to your Enrolled Agent can reassure you that you don’t owe any tax. Or, if you do, it is being dealt with properly… and you aren’t going to have a SWAT team descend upon your doorstep.

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Jeffrey Schneider, EA, CTRS, NTPI Fellow has the knowledge and expertise to help you reach a favorable outcome with the IRS. He is the head honcho at SFS Tax Problem Solutions as well as an Enrolled Agent and a Certified Tax Resolution Specialist.
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Now What? I Got A Tax Notice From The IRS. Help! Defining and deconstructing the scary and confusing letters that land in your mailbox. Jeff defines and deconstructs the scary and confusing letters in a fashion that mixes attention to detail with humor and an intricate clarification of what is what in the world of the IRS.

The book is available in paperback and ebook on https://Amazon.com
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For more on SFS Tax Problem Solutions, visit http://sfstaxproblemsolutions.com/
For more on SFS Tax & Accounting Services, visit http://sfstaxacct.com/
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