Reports of fraud are rising via emails, texts, social media, and fake letters/notices. How can you determine if the IRS is reaching out? Or if it is a scammer?

To help address this, the Internal Revenue Service (IRS) has released updated tips to help individuals recognize scams and distinguish between legitimate IRS communications. 

Digital Communication: Red Flags to Watch

The IRS doesn’t first contact people by email or social media.  Scammers often:

  • Send phishing emails to taxpayers,
  • Pose as an IRS social media account to contact taxpayers about a fake bill or refund, and/or
  • Text taxpayers about fake “tax credits” or “stimulus payments”.

These messages often prompt people to click on fake links that resemble legitimate IRS websites.

The IRS sends texts only if the taxpayer gives permission, and these texts are primarily to notify individuals about their Secure Messaging account. The IRS only collects a mobile number or email when the taxpayer subscribes to receive messages from the agency.

Letters and Notices

The IRS first contacts taxpayers with a letter or notice. The following methods are available to determine if the letter or notice is legitimate:

  • Log in to your IRS Online Account to see if the letter or notice is listed there.
  • Contact IRS customer service directly to authenticate it.
  • Verify that any collection notice from a private collection agency has the same Taxpayer Authentication Number as the Notice CP40 the taxpayer received from the IRS.

Phone Calls

IRS agents may call after mailing a letter to confirm appointments or discuss audits. Taxpayers should know:

  • The IRS doesn’t leave urgent or threatening messages. Scammers may say a warrant will be issued if victims do not call them back.
  • Private collection agencies may call for unpaid tax debts, but only after sending a written notice to the taxpayer and their representative.
  • The IRS and agencies never ask for payment with prepaid, store, or gift cards. Taxpayers can check payment options at IRS.gov/payments.

In-Person Visits

The IRS has stopped most unannounced visits by revenue officers to improve safety for taxpayers and employees.

Bottom line is taxpayers need to remain diligent about the phone calls, text messages, and emails they receive purporting to be the IRS.  When in doubt, view your account information online with the IRS or call the IRS directly by calling a number on the IRS website.

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Aura Advisors is a boutique tax consulting and compliance firm working with start-ups, emerging growth companies, and affluent individuals. Making it safer for good people and good companies to continue to do good things.