Beware of IRS scam during tax filing season

By U.S. Sen. Susan Collins
(R-Maine)

The phone rings. The caller ID displays “Internal Revenue Service,” “U.S. Department of the Treasury,” or the 202 Washington, D.C., area code. Concerned, the recipient of the call picks up the phone and is told that he or she owes back taxes to the IRS and must pay up immediately. The caller sounds like an authentic IRS employee and may even recite a badge number. Confused and frightened by the callers’ threats of arrest, foreclosure, or other adverse legal action, the call recipient is coerced into paying thousands of dollars that he or she does not owe.

Too often, this is the situation faced by the numerous victims of the IRS impersonation scam, many of whom are seniors. The Treasury Inspector General for Tax Administration (TIGTA), which is tasked with preventing fraud, waste, and abuse within the IRS, has called this scam “the largest, most pervasive impersonation scam in the history of the IRS.” Between October 2013 and February 2016, TIGTA received more than 950,000 complaints regarding this scam. In addition, TIGTA is aware of more than 5,300 victims who have collectively paid over $28 million to these con artists.

Putting a stop to aggressive and ruthless scams such as the IRS impersonation scam is among my highest priorities as chairman of the Senate Aging Committee. The Committee maintains a Fraud Hotline (1-855-303-9470) that serves as a resource for scam victims and documents reports of fraud. Based on the data collected by the Fraud Hotline, the Aging Committee recently unveiled a comprehensive anti-fraud resource guide titled, Fighting Fraud: U.S. Senate Aging Committee Identifies Top 10 Scams Targeting Our Nation’s Seniors. The guide contains tips on ways to identify and avoid common scams, including the IRS impersonation scam, which was listed as the most prevalent fraud.

IRS impersonation scam phone calls often involve a disguised, or “spoofed,” caller ID to make the victim believe that the call is coming from the U.S. Department of the Treasury or the IRS. Scammers’ phone calls often appear to originate from the “202” area code, or Washington, D.C., where the U.S. Department of the Treasury and the IRS are headquartered. These scammers then threaten retaliation, such as home foreclosure and even arrest, if payment of “back taxes” is not made. Seniors and others should remain vigilant about this scam, particularly in the midst of tax season when it is particularly prevalent.

With this scam reaching epidemic proportions across the country, the IRS has released several tips to help taxpayers identify suspicious calls that may be part of a scam. Although the IRS may call individuals who are delinquent on their taxes, they will only do so after contacting a taxpayer by mail first. Individuals who receive one of these calls and are unsure of whether or not they owe taxes should hang up immediately and call the IRS directly at 1-800-829-1040. In addition, the IRS will never ask for a credit or debit card number over the phone, or threaten to send local police or other law enforcement to have a taxpayer arrested. The IRS will also never request any personal or financial information by e-mail, text, or any social media. Moreover, it is important to note that the IRS will never demand that a taxpayer pay without giving the opportunity to question or appeal the amount claimed to be owed.

An important part of combating these scams is ensuring that our law enforcement officials pursue these criminals. Since some of these scams originate overseas, that can require an international effort. Last April, I chaired an Aging Committee hearing that examined IRS impersonation scams and efforts by law enforcement to find and prosecute all those involved. Education also plays a vital role in protecting seniors from being scammed in the first place. I am working with AARP to ensure that our seniors and their caregivers have the information they need to protect themselves against these cruel crimes. Efforts to increase awareness of the IRS impersonation scam are having a positive effect: it now takes con artists an average of 400 calls, up from 50 calls, to find a victim, but obviously that still translates into far too many people scammed of their savings.

Seniors who receive an unexpected call from someone claiming to be from the IRS should report it to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484 or www.TIGTA.gov, the Aging Committee’s Fraud Hotline, and local law enforcement. To request a copy of the Aging Committee’s Fighting Fraud book, please call the Aging Committee’s Fraud Hotline at 1-855-303-9470.