Scam Alert: Avoid an IRS Scam

As tax season rolls around, IRS scammers are working overtime to scam both businesses and individual taxpayers alike. Their tactics are scary and result in millions of dollar of fraud every year. To protect yourself and your business from this harmful tactic and avoid an IRS scam, remain on high alert.

Scammers often use telephone scams in which they call you our your business posing as an IRS agent and demand urgent action regarding your taxes. They are often very demanding and will use fake ID numbers or positions to make themselves more believable. Before you fall for this, know the IRS will begin contacting you through regular post office mail. If the issue escalates, the IRS may come to your home or business for these reasons:

• To secure payement if you or your business has a high overdue tax bill
• To tour a business as part of an audit or criminal tax investigation

While the IRS may ask for payment or visit your business, the IRS and their representatives will never:

• Make an immediate demand for payment, correspondence, or documentation. The IRS will begin any proceedings with a letter and will give you the appropriate time to respond. They will never require you to pay for back taxes, variances, or provide any documentation on the spot. If you ever get a request for immediate payment, this is a red flag – know your Taxpayer Bill of Rights and don’t be afraid to exercise them if need be.
• Request a specific type of payment such as a gift card or other wire transfer. If you like the payment request is too specific or fishy, it probably is. Be sure to contact the IRS and double check before paying with a specific kind of transaction.
• Threaten you, your employees, or business with local police, immigration officers, or other forms of authority to get you to pay. These threats are common among scammers and are simply a scare tactic to get you to go along with the scam.

An IRS official will never show up at your place of business without beginning the process by mail first. If you have never gotten anything in the mail regarding your tax liability, be very suspicious of this visit. If an IRS official arrives at your business unannounced, they will provide legitimate credentials and identification to announce their visit; they will also provide a government phone number for you to contact to verify the purpose of their visit. They will never demand immediate payment because IRS employees cannot directly accept money. Click here to learn more about how to avoid an IRS scam.

If you feel like you’re the victim of a potential IRS scam, double check with the IRS before making any payments or giving away any privileged information. If you have been the victim of a scam, please report the scam to try to prevent it from happening again in the future. If you have any questions about your IRS communication or need help managing your company’s tax preparation, please don’t hesitate to contact Tally Services.