from John O’Donnell, Online Trading Academy
— this post authored by Cathie Morrison
The IRS believes thieves are now attempting to get taxpayers’ information from the tax preparers. How would they do this? By tricking the tax preparers into unknowingly downloading malware onto their computers, thereby giving the thieves access to all their clients’ information.
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In this new scam, the thieves file tax returns using the information they steal from the preparers, which conveniently for the thief, contains the name, addresses, dependent names, W-2s and even bank account information of the victim/taxpayer. Because all the information matches past year tax returns, the returns are passing the security checks put in place by the IRS.
When the money gets deposited into the actual taxpayer’s bank account the thief calls the tax payer and claims to be an IRS agent. They inform the taxpayer that the refund was deposited in error and give them instructions to return the money. Unbeknownst to the tax payer, they are actually depositing the money in the thief’s bank account. Be on the lookout for this, and make sure you talk to your preparer about it.
If anyone calls or emails you posing as the IRS, it’s most likely a scam – here are five warning signs that the person on the other end of the line is a thief:
- They demand money instantly – the IRS will never do this, they will always send letters first and give you a chance to question or appeal the amount due.
- They tell you specifically how you need to pay – there are multiple ways to pay your IRS taxes, the IRS will never demand you pay a certain way.
- They ask for credit or debit card numbers over the phone – the IRS will never ask for payment information over the phone. If you pay with a credit or debit card, it will always be online or through a 3rd party company of your choosing.
- They threaten to involve local police or law enforcement groups – the IRS will not send the local police to your door or issue warrants.
- They may try to trick you into sharing private information over the phone.
If you ever have a question as to the validity of an IRS agent that’s calling you, you can always call 1-800-829-1040, make an appointment at a local IRS office or create an account on the irs.gov website. Any time you receive a call, whether it be from the IRS or another company or agency, it is a good idea to validate the identity of the caller by contacting the company yourself. Be sure not to use a phone number given to you buy the caller to make your verification.
How Do You Tell if a Caller is Trying to Scam You? (The IRS does not do this.)
- IRS calling to demand money on back taxes
- IRS calling to demand Federal Student Tax or taxes that don’t exist
- IRS calling or emailing tax professionals to unlock e-services
- Email asking for W-2s(it may even look like an internal company email)
- Emails telling you that you’re getting an unexpected refund but asking that you provide them with personal information to claim it
- Emails that sound like they’re from your tax professional
If you get targeted by one of these calls or emails, report it at: www.tigta.gov and forward the emails to [email protected]
About the Author
Cathie Morrison is an instructor and author at Online Trading Academy. She has a lifetime of experience in teaching combined with the skills of a master trader. She has inspired at every level as a public school teacher, college instructor, technology trainer and owner of a test preparation company as well as Online Trading Academy. Cathie has traded stocks, Forex and futures, and particularly likes options as a way toward income and wealth.
