Internal Revenue Service (IRS)
IRS Criminal Investigation issues 10 tips to avoid tax season fraud
PHOENIX – Each year, taxpayers’ personal information is compromised through phishing scams or by unscrupulous tax preparers. With tax season kicking off Jan. 24, IRS Criminal Investigation (IRS-CI) wants taxpayers to be aware of tax-related fraud. “IRS Criminal Investigation is committed to protecting Arizona taxpayers from financial harm,” stated IRS-Criminal Investigation Special Agent in Charge Albert Childress. “We want to remind U.S. taxpayers about ways they can protect their wallets and personal information.”
Tips to avoid tax season fraud include:
1. Choose a tax preparer wisely. Look for a preparer who is available year-round.
2. Ask your tax preparer for their IRS Preparer Tax Identification Number (PTIN). All paid preparers are required to have one.
3. Don’t use a ghost preparer. They won’t sign a tax return they prepare for you.
4. Don’t fall victim to tax preparers’ promises of large refunds. Taxpayers must pay their fair share of taxes.
5. Don’t sign a blank tax return. Taxpayers are ultimately responsible for what appears on tax returns filed with the IRS.
6. Make sure you receive your refund. Your refund should be deposited into your bank account, not your tax preparer’s.
7. The IRS will not call you threatening legal action. If you receive a call like this, hang up.
8. Don’t respond to text messages, emails or social media posts claiming to be the IRS. They may contain malware that could compromise your personal information.
9. Don’t click links or open attachments in unsolicited emails or text messages about your tax return. These messages are fraudulent.
10. Protect your personal and financial information. Never provide this information in response to unsolicited text messages, emails or social media posts claiming to be the IRS.
For more tips on choosing a tax professional or how to file a complaint against one, visit IRS.gov. Taxpayers who suspect tax violations by a person or business, may report it to the IRS using Form 3949A, Information Referral. Taxpayers can report phishing emails to phishing@irs.gov or IRS impersonation scams to TIGTA.gov. This year’s tax season begins Monday, Jan. 24 and continues through Monday, April 18 for most taxpayers. U.S. taxpayers are subject to tax on worldwide income from all sources and must report all taxable income and pay taxes according to the Internal Revenue Code. Taxpayers found to be committing fraud may be subject to penalties including payment of taxes owed plus interest, fines and jail time.
IRS-CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, across the U.S. and 11 attaché posts abroad. POINT OF CONTACT: Brian Watson • Brian.Watson@ci.irs.gov
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IRS Criminal Investigation sees surge in scams tied to Economic Impact Payments
PHOENIX — The Internal Revenue Service received a record number of complaints about Economic Impact Payment scams in June and July 2021 not seen in more than a decade.
“IRS:CI is seeing an unprecedented amount of fraud related to Economic Impact Payments,” stated Acting IRS-Criminal Investigation Special Agent in Charge C. Darren Lian. “We ask all Arizona taxpayers to think twice before clicking on any links found in emails or text messages. Although taxpayers are our first line of defense against scams and fraudsters, IRS:CI is committed to holding those who steal from taxpayers and exploit our nations’ tax system accountable for their actions.”
Phishing scams attempt to mirror legitimate IRS communications with the goal of convincing unsuspecting taxpayers to enter personal information or submit a payment. This information is then exploited by scammers.
Recent scam reports include:
• Text messages stating that a taxpayer is eligible for a “stimulus payment” and they must click on a link to complete the necessary information to claim it.
• Phishing emails claiming the IRS has calculated a taxpayer’s “fiscal activity” and they are eligible for an Economic Impact payment in a specific amount.
Although criminals are constantly changing their tactics, taxpayers can help protect themselves by acting as the first line of defense. The best way to avoid falling victim to a scam is knowing how the IRS communicates with taxpayers. The IRS does not send unsolicited texts or emails. The IRS does not threaten individuals with jail or lawsuits, nor does it demand tax payments on gift cards or via cryptocurrency.
Taxpayers should be on the lookout for grammatical, capitalization and spelling errors in emails and texts, which serve as fraud indicators. Taxpayers should also exercise caution when clicking shortened URLs, which can lead to fraudulent web pages.
Taxpayers who receive unsolicited emails or social media attempts to gather information that appear to be from either the IRS or an organization closely linked to the IRS, should forward the message to phishing@irs.gov. Taxpayers are encouraged not to engage potential scammers online or on the phone.
Taxpayers can report fraud or theft of their Economic Impact Payments to the Treasury Inspector General for Tax Administration (TIGTA). Reports can be made online at TIPS.TIGTA.GOV.
If you suspect you are a victim of identity theft as a result of a scam, visit the Taxpayer Guide to Identity Theft to know what steps to take.
To learn more about COVID-19 scams and other financial schemes, visit IRS.gov. Official IRS information about COVID-19 and Economic Impact Payments can be found on the Coronavirus Tax Relief page, which is updated frequently.
POINT OF CONTACT: Brian Watson • 520.631-9827 • Brian.Watson@ci.irs.gov
