Watch out for New Phone Scam Pretending to Be the IRS

By Eowyn @DrEowyn

Anyone with an ounce of sense knows that if the IRS or any government agency (federal, state, or local) has something to communicate to you, they use the US Postal Service mail — not the phone or email.

So if the phone rings and the caller says he represents the IRS, hang up.

Gregory Wallace reports for CNN that yesterday, March 20, 2014, federal authorities issued a warning that a nationwide phone scam has stolen $1 million from thousands of unsuspecting people.

An IRS inspector general office said the impostor claims to be an Internal Revenue Service representative and tells “intended victims they owe taxes and must pay using a pre-paid debit card or wire transfer. The scammers threaten those who refuse to pay with arrest, deportation or loss of a business or driver’s license.”

The IRS has received more than 20,000 reports about the scam.

J. Russell George, the Treasury inspector general for tax administration, called it “the largest scam of its kind that we have ever seen.”

According to the inspector general, IRS officials typically first reach out by mail rather than phone, and don’t demand immediate payment by debit card, credit card or wire transfer.

The IRS said people who receive such calls or other suspicious requests should contact the IRS.

Tax-related phone scams are among the “dirty dozen” fraud techniques the IRS warned about earlier this tax season. It also warned of phishing emails, preparer fraud and claims a preparer can offer “free money.”

Of course, IRS phone scam notwithstanding, the Internal Revenue Service itself is just one huge scam. LOL

~Eowyn