A trend in our national news over the last several months has been cases of identity theft and their increasing frequency and severity.
Major American corporations have seen their human resources databases hacked, retailers have unwittingly turned over financial information to criminals overseas, and the Office of Personnel Management (an independent agency of the US Government) recently disclosed that confidential personal information was stolen for millions of current and former federal workers and contractors.
Our tendency might be to think that we are too small to be targets of this activity, but that’s simply not true. A recent spike in phone calls placed to unsuspecting taxpayers, from parties claiming to be the IRS, should have you on high alert that thieves can, and do, target small businesses and individuals.
These fraudulent phone calls sound completely credible, and may or may not be automated – but they contain threats of police arrest, deportation, and revocation of various licenses and permits, unless you pay an “outstanding” tax bill immediately.
Make no mistake about it, though, if you get a call like this, someone is trying to steal your money.
According to the IRS Commissioner, “if someone calls unexpectedly, claiming to be from the IRS, with aggressive threats if you don’t pay immediately, it’s a scam artist calling.”
The IRS has a well-defined system in place to collect tax, make inquiries, and communicate with taxpayers, and it always begins with a letter in the mail. So if you have not received any paper notices before you receive a phone call, do not share any information – hang up!
Scammers can manipulate caller IDs to appear even more credible; they might even claim you are entitled to a refund if you’ll simply give them your banking information. By these measures, they steal millions of dollars from innocent people each year.
Recently, guidance was provided to help spot scammers. In that guidance, the IRS pointed out that it will never call to demand immediate payment, or call about taxes owed, without mailing you a bill first. IRS will also never demand that you pay taxes without giving you a chance to appeal the amount they say you owe.
They won’t require you to use a specific method to pay your taxes, such as a prepaid debit card; they won’t ask for credit or debit card numbers over the phone; and the IRS will not threaten to bring in local police, under any circumstances. In addition, the IRS does not use email, social media, or text messages to discuss your tax situation.
These are all telltale signs of thieves, and you should always hang up the phone to protect yourself.
If you remember these pointers and guard your personal and financial data carefully, you can shield yourself from scams and identity theft. Spread the word and help family and friends do the same.
If you receive a threatening or suspicious call, report the incident to TIGTA at 1-800-366-4484 or at www.tigta.com.
Adam Wolfe, CPA is the Partner & Tax Director of Bobby Medlin, CPA and works in the firm’s Lake Ozark branch. Adam has worked at the firm’s Lake Ozark branch since 2010.
