March Article: How to Identify and Avoid a Tax Crime

     In the news, hardly a day goes by without hearing of or reading about a new type of Tax scam. They seem to get more deceptive as time goes by, and as a result it can be difficult to know if or when we have become a target of criminals. With that said, there are a few points that we can keep in mind that will indicate whether or not we are really dealing with the IRS, or just an impersonator.

1.   A Surprise Deposit in Your Bank Account. This is a new variation of a time tested trick. Fraudulent Tax Returns being filed with stolen identities is nothing new. The goal has always been to receive the Tax Refund before the IRS knew that a crime had taken place. The new aspect is that the Refund is being sent to the real Taxpayer, into their bank account. If you find yourself in this situation do not spend that money. Contact your bank, local police, the FBI, and the IRS. Inform them of the situation, as this is evidence of Identity Theft and bank fraud. Act quickly because this part of the crime leads to the next step.

2.   An E-Mail, phone call, or text from the IRS. The IRS will always start communication with Taxpayers by sending a letter in the mail. However, criminals are counting on a person’s curiosity, especially if they have an unexpected amount of extra money from the government. They want you to answer the phone or click on the link. This will allow for the threats and intimidation to be put to use on victims. In other cases a virus can be unleashed to gain sensitive personal information. This is a clear sign of the next identifying mark.

3.   Threats that Law Enforcement will be called. In many reported cases of those who had fallen victim to these kinds of criminal activities, the scammer said that the police would arrest, or immigration would deport the Taxpayer. It’s understandable to feel intimidation when dealing with the IRS. They are very powerful. Remember that owing taxes is not a legal issue. It is civil and never something that the police would be called to deal with. This is a classic tactic used by these sorts of criminals.

4.   Demand for immediate payment. The final part of what the criminals want is all the money they can get. The IRS will not demand such payment and they cannot dictate how payment will be made to them. On the other hand, criminals make specific demands about wire transfers or gift cards. This is a clear sign of a criminal.

These days it truly pays to think twice before acting. While the scams may change from year-to-year, there are always going to be certain details that remain the same. If you feel unsure or uncomfortable when dealing with someone who claims to be from the IRS, you don’t have to talk to them. Contact us and we can represent you before the IRS to see what the issue might be. This is your right.

    If you found these points to be helpful, please sign up for our Free Monthly Newsletter. We will provide a variety of tax tips and strategies to help you and your business thrive. Please comment below about what topics you would like to see here in the future.

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