Tax Debt Relif Scams - Don’t Fall For Them

IRS tax relief scams are fraudulent schemes that target individuals and businesses seeking help with their tax problems. These scams typically promise to reduce or eliminate tax debt, penalties, or interest, but instead, they take advantage of unsuspecting victims and steal their money or personal information.

Here are some of the most common types of IRS tax relief scams:

1. Phishing scams: Scammers may send emails or make phone calls pretending to be from the IRS and ask for personal information such as social security numbers, bank account numbers, or other sensitive data. They may use scare tactics and threaten legal action or arrest to pressure victims into providing their information.

2. False promises of tax debt relief: Some scammers may claim that they can settle your tax debt for pennies on the dollar or offer to negotiate with the IRS on your behalf. They may ask for upfront payments or charge high fees, but ultimately fail to deliver on their promises.

3. Fake tax preparation services: Scammers may set up fake tax preparation services or websites that offer to file your taxes for you. They may charge exorbitant fees or steal your personal and financial information for identity theft or other fraudulent purposes.

4. Identity theft scams: Some scammers may use stolen personal information to file false tax returns and claim fraudulent refunds. Victims may not realize their identity has been stolen until they receive a notice from the IRS or when they try to file their own tax returns.

5. Fake charities: Scammers may set up fake charities that claim to support disaster relief efforts or other causes. They may ask for donations and promise tax deductions, but the donations may not be tax-deductible, and the money may go directly to the scammers instead of the intended cause.

It’s important to be aware of these types of IRS tax relief scams and to take steps to protect yourself. The IRS will never contact you by email or phone to ask for personal information or payment, so be wary of unsolicited communications. Before hiring a tax relief service or making a donation to a charity, do your research and check for any red flags, such as high fees, unverifiable credentials, or lack of transparency. 

If you think you are a target of an IRS scam, it’s important to take immediate action to protect yourself and report the scam to the proper authorities. Here are some steps you can take:

1. Do not engage with the scammer: If you receive a phone call or email from someone claiming to be from the IRS, do not give out any personal information or make any payments. Hang up the phone or delete the email.

2. Verify the legitimacy of the communication: If you’re not sure whether the communication is legitimate, you can contact the IRS directly to verify. You can call the IRS at 1-800-829-1040 or visit the IRS website to find contact information for your local IRS office.

3. Report the scam: You can report the scam to the Treasury Inspector General for Tax Administration (TIGTA) by calling 1-800-366-4484 or visiting the TIGTA website. You can also report the scam to the Federal Trade Commission (FTC) by visiting the FTC website.

4. Monitor your accounts: If you have given out any personal information, monitor your financial accounts and credit report closely for any suspicious activity. Consider placing a fraud alert or credit freeze on your credit report.

5. Educate yourself: Learn about common IRS scams and how to protect yourself from them. The IRS provides information on its website about how to spot a scam and how to avoid becoming a victim.

Remember, the IRS will never contact you by phone or email to ask for personal information or payment. If you receive suspicious communication, it’s always better to err on the side of caution and report it to the proper authorities.