The IRS has warned of an influx of gift card scams targeting unsuspecting taxpayers, especially during the holidays. Scammers often send emails and text messages asking taxpayers to settle a fake tax bill with gift cards. Some even pose as IRS agents and call taxpayers to request gift cards.
We will explain how these IRS gift card scams work and what payment methods the IRS accepts.
Does the IRS Accept Gift Cards for Tax Payments?
No, the IRS does not accept gift cards for tax payments. In a recent press release, the IRS reiterated that they will never ask taxpayers for gift cards as payment when they owe taxes. However, criminals continue to dupe taxpayers into giving them gift cards to pay a fake tax bill.
How Do Scammers Request Gift Cards for Tax Payments?
As mentioned earlier, there are several ways scammers request gifts from taxpayers:
- Phone Calls, Text Messages, and Email: One of the most common ways scammers request gift cards is by calling taxpayers while impersonating an IRS agent. They may also reach out to taxpayers via text, email, or even social media messages. In most cases, scammers instruct taxpayers to buy gift cards from specific stores. They will then ask for the gift card number and PIN.
- Stolen Identity: A scammer posing as a government official may also call a taxpayer, informing them that their identity was “stolen” and used to open a fake bank account. They will then trick the taxpayer into revealing personal details, which they use to scam money from them.
- Threats: IRS scammers also threaten or harass taxpayers with a fake tax penalty. The scammer then instructs taxpayers to settle their tax debt using gift cards to avoid this penalty.
What Payment Methods Does the IRS Accept for Taxes?
The IRS offers several options for paying taxes.
These include:
- Credit or Debit cards: You can pay your taxes by debit or credit card online, by phone, or with the IRS2Go app. You can also use digital wallets like PayPal to make tax payments.
- Electronic Funds Withdrawal: EFW is an electronic payment option when filing taxes through a tax pro or with tax prep software. With EFW, you pay your taxes directly from a bank account when you e-file. Another way to pay taxes from a bank account if you did not e-file is IRS Direct Pay.
- Pay With Cash in Person: Taxpayers can also make cash payments at a local IRS Taxpayer Assistance Center. Call 844-545-5640 to schedule an appointment 30 to 60 days before the date you want to pay your taxes.
How Do You Know If It is Really the IRS Contacting You?
The IRS mostly contacts taxpayers first by letter or notice delivered by the US postal service.
The IRS will NEVER do the following when contacting a taxpayer:
- The IRS will never call you to ask for an immediate tax payment using a gift card, debit card, or other payment method.
- The IRS does not threaten taxpayers with possible driver’s license or business license revocation due to unpaid tax bills. The IRS does not also threaten to revoke someone’s immigration status due to tax issues.
- The IRS will never demand payment of taxes without a chance to question or appeal the amount you owe.
- The IRS will never threaten to involve the local police, immigration offices, or any other law enforcement in pursuit of unpaid taxes.
What Should I do When I Receive a Suspicious IRS Call, Text, or Email?
If you believe a scammer pretending to be the IRS is targeting you, take the following urgent steps:
- Call the Treasury Inspector General for Tax Administration at 800-366-4484 or use the Impersonation Scam Reporting tool at https://treasury.gov/tigta/contact_report_scam.shtml.
- Visit https://reportfraud.ftc.gov/ and follow the instructions to report the IRS scam to the Federal Trade Commission. Make sure to add an appropriate note, like “IRS phone scam.”
- Report any threatening or harassing calls and texts to the IRS. Email a complaint to [email protected]. Use “IRS Scam” in your subject line.
Scammers steal taxpayers’ hard-earned money, even during the holiday season, with fake tax debt claims and gift card payment scams. The IRS reminds taxpayers that the agency cannot accept gift cards as payment for a tax bill. If you have received suspicious calls, texts, or emails asking you to pay taxes using a gift card, contact the IRS immediately.
If you need help, you can schedule a free call with us by going to https://wiztax.com/start-free/.
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