Beware of fake IRS calls: recognize them and respond appropriately

IRS phone scams continue to be a serious threat affecting thousands of people and costing them a lot of money. They are particularly common during tax filing season. However, scams can happen at any time of the year.

The phone scams also evolve each year, with the story and details changing and adapting. However, being informed can prevent you or others from falling victim to such scams, and luckily there are some surefire signs that always apply. More on those below.

Scammers may employ fake names and IRS badge numbers or use scare tactics to shock people into handing over personal financial data. They often threaten to arrest or deport you or refer to “miscalculation errors.” Some of the stories the scammers use include saying they are filing a lawsuit against you for back taxes or that they are calling from the Taxpayer Advocate Service. Sometimes they take the form of robocalls requesting a call back.

Scammers prey on vulnerable people such as newly arrived migrants, people who aren’t confident in English, the elderly, and people who struggle for some reason with technology. Callers are often abusive, hostile and could demand an immediate payment of some sort.

Some callers switch the story up and instead will tell you that you are entitled to a large refund, but in order to benefit from this, you have to provide personal information. They usually use fear, uncertainty, and doubt to influence victims, or they make promises of a payment.

Scammers may have some information already, such as the last four digits of your Social Security Number or your full name. They could send you a bogus email to support their fake call. They also may call back, pretending to be from a local police force or the Department of Motor Vehicles.

Why are there fake IRS calls?

These callers are actually trying to get you to provide personal or financial information, like your Social Security Number or individual taxpayer identification number, that could then be used for fraud or sold. This is called phishing.

Callers may also try to pressure you to transfer money or send cash via prepaid debit cards, ultimately for their own monetary benefit. For them, the strategy is a numbers game — they only need a few people out of the thousands of calls placed to fall into their trap.

How to recognize fake IRS calls and phone scams

The first thing to be super clear on is that the IRS never initiates calls, emails, or other types of communication to obtain personal details like financial information, PIN numbers, passwords, bank account numbers, or anything else. If that happens, the call is fake.

The IRS would also never threaten to bring in security or police forces and have a person arrested for not paying their taxes. It would never demand taxes be paid without first giving taxpayers the chance to question or appeal an amount owed. Anyone doing so is attempting a scam.

Additionally, the IRS wouldn’t ask for checks made out to third parties, nor would it demand payment using a specific payment method like a wire transfer or gift card. The agency never uses such methods for tax payments.

Note that fake IRS calls cannot always be identified using caller ID. That's because some criminals use technology or software to spoof the caller ID and make it appear to come from within the country or be from an IRS office number or a local, state, or federal agency.

How the IRS actually gets in touch

Generally, if you owe any taxes, the IRS will snail mail you a bill. Rather than threats, the IRS will usually facilitate a payment agreement or a short-term payment plan.

If you are concerned about your tax situation, you can review your information online, call the number on the mailed billing notice, or call the IRS at 800-829-1040.

What to do if you get a fake IRS call

If you get a fake IRS call, you can hang up immediately. You can also take the approach of allowing all non-contact phone calls to go to voice mail (if you have it) and then calmly listening to the message.

If you are on a call and you are unsure if the person is an IRS employee or not, you can log in to your tax account information online (at IRS.gov) and confirm how much you actually owe, if anything. It is totally reasonable to ask the caller to hold while you check, or you can even ask for a phone number to call them back on. IRS phone numbers and other contact methods are available on their website as well. If the caller resists these options, they are not from the IRS.

After, you can block the phone number using software for smartphones. Android and iPhones usually have built-in features for blocking numbers, and some carriers also provide blocking tools. Often, you can just tap on the number in your recent calls list and select to block it, but if that isn’t an option for you, you can also download a third-party app like RoboKiller or Truecaller.

Finally, whether you were a victim of the scam or if you caught them and avoided any issues, you can report the incident to the Treasury Inspector General for Tax Administration (TIGTA) via an online complaint form or by calling them at 1-800-366-4484. Alternatively, you can email phishing@irs.gov with “IRS phone scam” in the subject field.

To make a report while on the call, try to get as much information as possible and include it on the form or in the email. Note down details such as the phone number of the caller (caller ID), the number you were instructed to call back, and a short description of the conversation. Ideally, also include the employee name and ID number given, the date and time of the call, and your location or time zone.

Whatever happens, stay alert and observant. Never feel ashamed if you do fall for a scam, but do know that you can speak out — only the scammers benefit from people staying quiet.