This scam is easy to avoid if taxpayers remember that the IRS never asks for or accepts gift cards as payment for a tax bill.

Here’s how this scam usually happens:

• The most common way scammers request gift cards is over the phone through a government impersonation scam. However, they will also request gift cards by sending a text message, email or through social media.
• A scammer posing as an IRS agent will call the taxpayer or leave a voicemail with a callback number informing the taxpayer that they are linked to some criminal activity. For example, the scammer will tell the taxpayer their identify has been stolen and used to open fake bank accounts.
• The scammer will threaten or harass the taxpayer by telling them that they must pay a fictitious tax penalty.
• The scammer instructs the taxpayer to buy gift cards from various stores.
• Once the taxpayer buys the gift cards, the scammer will ask the taxpayer to provide the gift card number and PIN.

Here’s how taxpayers can tell if it’s really the IRS calling. The IRS will never:

• Call to demand immediate payment using a specific payment method such as a gift card, prepaid debit card or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes.
• Demand that taxpayers pay taxes without the opportunity to question or appeal the amount they owe. All taxpayers should be aware of their rights.
• Threaten to bring in local police, immigration officers or other law enforcement to have the taxpayer arrested for not paying.
• Threaten to revoke the taxpayer’s driver’s license, business licenses or immigration status.

Any taxpayer who believes they’ve been targeted by a scammer should:

• Contact the Treasury Inspector General for Tax Administration to report a phone scam. Use their IRS Impersonation Scam Reporting webpage. They can also call 800-366-4484.
• Report phone scams to the Federal Trade Commission. Use the FTC Complaint Assistant on FTC.gov. They should add “IRS phone scam” in the notes.
• Report threatening or harassing telephone calls claiming to be from the IRS to phishing@irs.gov. People should include “IRS phone scam” in the subject line.

More information:
IRS Impersonation Scam Reporting
Consumer Alerts
Report Phishing

Share this tip on social media — #IRSTaxTip: Taxpayers shouldn’t let gift card scammers ruin the holidays. http://ow.ly/mbiP50LNNG7

The post Gift Card Scammers first appeared on KCMD Accountant & Advisors.

Crooks are always looking for new ways to scam unsuspecting taxpayers. Scammers impersonate the IRS by phone or email, in person, or by mail or delivery service – and cost people their time and money. By staying vigilant against schemes and scams, taxpayers can protect themselves.

Scammers can pose as the IRS by mail – taxpayers should know the facts
One of the newest and more devious schemes involves mail coming in a cardboard envelope from either a delivery service or the United States Postal Service (USPS). The enclosed letter includes the IRS masthead and wording that the notice is “in relation to your unclaimed refund.” The contact information does not belong to the IRS, but the mailing looks official. This scheme seeks sensitive personal information from taxpayers – including driver’s license photos – that can be used by identity thieves to steal the taxpayer’s refund and other sensitive financial information.

It’s now easier to spot when it’s a scammer at the door and not the IRS
Scam artists may also appear at the door posing as IRS agents, creating confusion for not just the taxpayers but also local law enforcement agencies. As this scam has grown, taxpayer confusion about home visits by IRS revenue officers has increased.

To help combat these scams, the IRS recently announced that it is ending most unannounced visits to taxpayers by agency revenue officers. In place of the unannounced visits, revenue officers will instead contact taxpayers through an appointment letter, known as a 725-B Letter, and schedule a follow-up meeting. This will help taxpayers feel more prepared when it is time to meet.

Taxpayers who receive a request from IRS in the mail or by phone can always contact IRS customer service to authenticate it.

Scammers may also contact taxpayers electronically
Taxpayers should be on the lookout for a summer surge of tax scams as identity thieves continue sending email and text messages promising tax refunds or offers to help ‘fix’ tax problems. They may pose as the IRS or tax professionals, urging the taxpayer to click fraudulent links so the identity thieves can steal valuable personal information.

Taxpayers should remember: the IRS never initiates contact regarding a bill or tax refund by email, text or social media.

The post IRS Tax Tip 2023-99 How to Detect IRS Scammers first appeared on KCMD Accountant & Advisors.