Watch out for IRS imposter scams this tax season

Tax scams are often as predictable as taxes themselves. They reappear each tax season with a slightly different spin, but the central theme is scammers posing as the Internal Revenue Service trying to trick people into paying up or sharing personal information.

How the scam works

The tax scams may start with a phone call and take two primary forms. In the first version, the IRS “agent” says you owe back taxes and pressures you into paying with a prepaid debit card or wire transfer. If you don’t comply, the scammer threatens you with arrest and fines.

In the other version, scammers claim they are issuing tax refunds and ask you for personal information to send your refund. That information can later be used for identity theft.

Those impostors often go to great lengths to appear real. The scammer may give a fake badge number and name. If it’s a phone scam, your caller ID may show the call is coming from Washington, D.C.

Con artists sometimes follow up scam calls with an email that uses the IRS logo, colors and official-sounding language. Often, the scam starts with a serious and official-sounding “robocall” recording.

One Ohio consumer reported to the BBB Scam Tracker their husband received three strange calls on his cellphone from a number located in Washington, D.C. The caller said they were an IRS agent and warned the consumer someone had “stolen or taken over (their) Social Security number.” The consumer reported the caller told them the police would come to their front door and arrest them if they did not call the number back.

Scammers typically try to push you into action before you have time to think. The IRS will allow you to ask questions or appeal what you owe. Also, their first contact with you will always be by mail, not by phone or email.

How to avoid IRS imposter scams

—Verify directly with the agency. If someone claims to be from the IRS, contact the agency using its official website or phone number. Never use the contact information provided by the caller or emailer.

—Know how government agencies operate. Legitimate agencies will not demand immediate payment, threaten arrest, or ask for sensitive information over the phone, email or text.

—Beware of unusual payment methods. Requests for payment via gift cards, cryptocurrency or peer-to-peer payment apps are a clear sign of a scam.

—Protect your personal information. Avoid sharing sensitive details like Social Security numbers, bank account details or passwords unless you initiated the contact with a verified agency.

—Check email extensions. Official government correspondence usually comes from “.gov” or “.mil” addresses. Messages from Gmail, Yahoo or similar domains claiming to be government-related are scams.