Every year brazen criminals rip off taxpayers by impersonating the IRS. Recent industry data reveals over 75,000 victims have lost $28 million to tax scammers in the last five years alone. An IRS imposter may contact you via phone, email, mail, text message, or other means and falsely claim you must pay your tax debt immediately or face severe, even criminal, consequences.
Unfortunately, these imposters keep innovating new ways to manipulate unsuspecting tax debt victims, making it increasingly challenging to protect against deceitful tactics.
We will review some common IRS imposter red flags to watch out for, how to verify if you actually owe taxes, and the legitimate ways to pay off your tax debt with the IRS.
Common IRS Imposter Red Flags
Here are some of the IRS imposter red flags to watch out for:
Phone Calls
Be wary of phone calls if you have not received an official IRS letter or notice saying you have a tax balance due. Typically, the IRS first contacts taxpayers by mail. They will never start communication with random phone calls.
Emails
Similarly, imposters may initiate contact by sending an email pretending to be from the IRS. However, the IRS does not initiate contact with taxpayers via email to request financial or personal information.
Again, they will first mail a written notice if you owe money. Do not click on any links or open any attachments. You should also not reply to suspicious emails claiming to be from the IRS.
Prerecorded Voicemails
If you have received a prerecorded voicemail from someone saying they are from the IRS, you are likely dealing with an imposter. The IRS will not leave an urgent or threatening prerecorded voicemail.
Text Messages
The IRS will not send you a text if you owe taxes. Be cautious of unsolicited texts asking for sensitive data, especially Social Security numbers, bank account details, credit card numbers, or passwords.
Social Media Messages
Another scam IRS imposters try involves contacting taxpayers via social media. The IRS will not ever message your social media accounts to ask for financial or personal information or to demand a tax payment.
Fictitious Forms
IRS imposters may send you a tax related form that does not appear on the official IRS website. If you are sent a form, confirm whether it is legitimate. You can search IRS forms here: https://irs.gov/forms-instructions.
If the notice you received does not appear on the list, it is probably fake. You can also call the IRS to see if they sent you the form.
Request Credit or Debit Card Payment by Phone
The IRS will not ever call you and ask you to pay your tax debt over the phone with a credit or debit card.
Threats
Regardless of how much you owe the IRS, they cannot revoke your driver’s license, business license, or immigration status without following due process. They also cannot threaten to arrest you simply because you owe taxes. Plus, the Taxpayer Bill of Rights (TBOR) allows everyone a chance to appeal what the IRS says they owe.
Unexpected Refund
If someone contacts you claiming you are owed a tax refund and you have not received a letter from the IRS or even filed taxes, it could be a fraudulent attempt to obtain your personal information.
Who to Follow Up With at the IRS If Someone Calls You or Messages You Online To Demand a Tax Debt Payment
If you get suspicious phone calls, email messages, or social media messages demanding an immediate tax debt payment, contact the Inspector General for Tax Administration at 800-366-4484 to report. Call the main IRS number at 800-829-1040 if you know you have tax debt and need to verify how much you owe and what your payment options are.
How the IRS Contacts Taxpayers with Tax Debt
The IRS will first mail a series of tax balance due notices, starting with a CP14 letter followed by three CP500 reminder letters (CP501, CP503, and CP504).
As mentioned earlier, the IRS never sends text messages or contacts taxpayers through social media. The same is true for unsolicited phone calls and emails regarding tax balances.
Ways to Find Out If You Owe the IRS and How Much
There are a couple of ways to find out the taxes that a taxpayer owes the IRS:
- Individuals: If you do not have an IRS letter or notice with your current tax amount due, individual taxpayers can view a tax balance with an IRS online account at https://irs.gov/payments/your-online-account.
- Businesses: Taxpayers representing businesses can call the IRS at 1-800-829-4933 to find out how much business tax is due, including interest and penalties.
How to Make Secure Payments to the IRS When You’re Paying Off Tax Debt
Here are some of the secure ways to pay off your IRS tax debt:
- Electronic Payments: Utilize electronic payment methods like Direct Pay or the Electronic Federal Tax Payment System (EFTPS). Direct Pay allows you to pay directly from your bank account, while EFTPS is for more complex payment schedules. These options are secure and convenient ways to pay your tax debt online.
- Bank Wire Transfer: If you are making a larger tax debt payment, consider using a bank wire transfer. This process allows you to quickly transfer funds directly from your bank account to the IRS.
- Mail: You can also send a check or money order by mail. Make it payable to the “United States Treasury” and ensure you include your name, address, taxpayer identification number (SSN or EIN), tax year, and type of tax owed on the payment.
What Payment Plans the IRS Offers If You Owe Back Taxes
The IRS offers several payment plans for individuals who owe back taxes. Some of the common payment plans include:
Installment Agreement (IA)
This is a monthly payment plan for those who cannot pay the full amount of their tax debt all at once. The IRS offers short-term and long-term installment agreements depending on the amount of taxes owed and how much a taxpayer can afford to pay each month.
Offer in Compromise (OIC)
OIC allows taxpayers to settle their tax debt for less than the full amount owed. To be eligible, taxpayers must show the IRS they do not have the ability to pay off the full tax debt, and not being able to pay less causes severe financial hardship.
Currently Not Collectible (CNC) Status
Although not a payment plan, the IRS will consider pausing collections if a taxpayer proves that they cannot afford to make any payments due to financial hardship. Even with CNC status, however, interest and penalties continue to accrue until you pay off your tax debt.
Identity thieves are inventing tricks every tax season to steal from innocent taxpayers with tax debts. Watching out for the common scams can help you avoid losing money to IRS imposters. If you have any questions or need help navigating complex tax debt issues, contact a licensed tax attorney.
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