Client Memo – IRS Warns of Phone Scams

by | Dec 17, 2020 | Client Memo, Security, Tax

We would like to bring to your attention a recent warning issued by the IRS about a phone scam that targets people across the nation. Callers claiming to be from the IRS would tell intended victims that 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 callers who commit this fraud often:

    1. Use common names and fake IRS badge numbers.
    2. Know the last four digits of the victim’s Social Security number.
    3. Make caller ID appear as if the IRS is calling.
    4. Send bogus IRS emails to support their scam.
    5. Call a second time claiming to be the police or DMV, and caller ID again supports their claim.

The truth is the IRS usually first contacts people by mail – not by phone – about unpaid taxes. And the IRS won’t ask for payment using a pre-paid debit card or wire transfer. The agency also won’t ask for a credit card number over the phone.

If you receive a call from someone claiming to be with the IRS asking for a payment, hang up and call us. We will help you with your payment questions. You may also contact the IRS directly at 800-829- 1040. Do not give out any credit card, bank, or other financial accounts information over the phone.

Be alert for phone and email scams that use the IRS name. For more information regarding fraudulent email scams, please refer to our previous memo – Fraudulent EFTPS Email Scams. The IRS will never request personal or financial information by email, texting, or any social media.

If you have any questions about identifying or reporting this or other phishing, e-mail scams, and bogus IRS websites, please do not hesitate to contact us. You may view a copy of this and other FBD tax-related memos on our website under PUBLICATIONS/Client memos –

Disclaimer: The information contained in this publication is intended solely to provide general guidance on matters of interest for the personal use of the reader, who accepts full responsibility for its use. In no event will Fishman, Block + Diamond, or its partners, employees, or agents, be liable to you or anyone else for any decision made or action taken in reliance on the information in this website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.