IRS Scam

[SaraEA]

In a little over two weeks we have had six clients call us because they received calls from the "IRS."  In each case they were told they owed money and would be arrested if they did not pay that day.  They were instructed to purchase prepaid debit cards and to give the caller the card number when he called back.  Amounts were between $3500 and 8500.  Return calls to the number on the caller ID didn't go through.

 

Almost all these clients were frantic.  One even sent spouse to bank to withdraw the cash. Another blamed us for doing his taxes wrong.  Only one, an attorney, realized it might be a scam and called to confirm that suspicion.  I am now getting worried about the clients who may have gotten this call and didn't talk to us before they paid.  Anyone else have clients who were targeted by this scam?

 

Those of you who have websites or blogs or send client newsletters will do your clients a service by mentioning this scam. (Details are on the IRS website). 

[NECPA in NEBRASKA]

I have received three calls this week. 

[Lion EA]

I was at a meeting with 12 tax preparers around the table yesterday.  More than one had had client calls recently about "IRS" calls.

[Tax Prep by Deb]

Had one at the beginning of tax season.  Called me and I googled the number and found it to be a scam, told him not to discuss anything with them and do not send money because this is not how IRS operates.

 

He was very relieved. 

[JohnH]

This is a big topic of conversation over on the Drake Forum as well. One would get the idea that this scam is increasing in size and scope. Wonder if it would be wise to brainstorm a generic letter to send to all our clients warning them about this scam and that it is growing.

[kcjenkins]

Such a letter will also remind your clients that you are caring for them, not just a 'once a year, do the return, take the money, and forget them' business.  Cheap but effective marketing.

[Catherine]

I put a note on my web site and will email everyone I have an email address for.  The letter will go to the non-email older folks; that was a good idea.

[JohnH]

That's what I was thinking. A letter for those for whom I don't have email, and a slightly revised version for those who do.

[michaelmars]

Deb is right, this started in January or February with clients getting these calls.  One of our clients left his home and drove around for 3 hours until he reached our offices.  He was afraid to stay home and get arrested and this was a young professional, not an older person.

[JohnH]

IRS has a well-worded warning on their web site about this issue as well.

 

http://www.irs.gov/uac/Newsroom/IRS-Reiterates-Warning-of-Pervasive-Telephone-Scam

[Catherine]

Thanks for that link -- I added it to the info on my web site.  Sent out emails to everyone I have an email address for, and had my daughter call all the older folks and the few younger ones with no emails.

[B. Jani]

Also this scam targets more non English speaking community. And scammers are so smart, they can speak your language. Mostly their target is senior community as they are more vulnerable to this then the young. I myself got the call about 3 times so far this year and every time told them to mail me the info, cursed and cut off the phone. I put a small flyer when deliver the completed tax return file mentioning that if any one call or get any letter, you must call me ASAP for the help. (BIG LETTERS) and client started asking me why this flyer? when explained, they are now prepared and ignore the calls.

[ILLMAS]

I wonder why so many people have not seen this on the news?  Major networks, like Fox, CNN, ABC etc.... have covered this back in February or April of this year.

[Naveen Mohan from New York]

A new version of the same scam. One outfit left a message on my answering machine "Federal Charges are pending against you. Please call us back right away to resolve the charges".

[SaraEA]

Two more calls today from those who heard from the "IRS," including one of our staff.  He wasn't home but they left a threatening message on his machine.  These crooks are really busy, which hopefully means they'll leave enough of a trail that they can be caught.

[kcjenkins]

I wonder why so many people have not seen this on the news?  Major networks, like Fox, CNN, ABC etc.... have covered this back in February or April of this year.

Because they keep changing it up a bit, and pretty much EVERYONE is at least a little scared of the IRS.  Given how much power they have, you have to be.  

[SaraEA]

kc, sounds like you've been listening to too many commercials:  "The IRS has the power to take your home, your business, your bank account, attach your wages.  Call us and we'll settle for pennies on the dollar."  Sure the IRS has the power to do these things, but they rarely do.  The only time I've ever seen them close a business was for egregious violations of trust funds.  They only do this so the rest of taxpayers don't have to make good when an owner fails to turn over employees' withholding and FICA taxes.  They'll only take a house if it's worth their while (house is worth $250, mortgage is $200, IRS won't do it because after they pay all the filing and sales fees there won't be enough left to pay for their trouble).  I've only seen them attach wages and bank accounts after taxpayers have ignored years of letters.

 

The average taxpayer likely doesn't know this, which is why the pennies on the dollar places stay in business.  So yes, taxpayers are likely more afraid of the IRS than they need to be.  In reality, only nonprofits really need to worry....

[kcjenkins]

Sara, as a tax professional for over 35 years, I'm well aware that the IRS does not use it's full power too often.  However, sometimes they do.  I hardly need to watch commercials to know that.  But that was not my point, anyway.  My point was that the average person IS scared of the IRS. Surely, if you've been in this business very long, you know that many clients panic if they get a letter from the IRS unexpectedly?  It is that which makes the IRS Scam so effective.

[Lion EA]

MASEA included the following in today's e-newsletter:

 

 

IRS Warns Of Increasingly Pervasive Phone Scam

 

 

 

 

 

 

The Internal Revenue Service is warning people of a sophisticated and aggressive phone scam targeting taxpayers, including recent immigrants.
 

IRS officials said people have been reporting the aggressive phone scam over the last several months, and victims said they're being threatened with being deported, arrested, having utilities shut off or having their driver's licenses revoked. The callers are frequently hostile and insulting, which is a way to scare their potential victims, the IRS said.

IRS officials said they will let people know by written notification by the U.S. mail if you owe taxes, and the IRS would never ask for a credit card or bank account number over the phone.

 

The State Attorney General in Connecticut has also recently stated that these types of phone scams have become increasingly pervasive over the last several months. 

Scam victims are encouraged to report calls to the Treasury Inspector General for Tax Administration.