Senior citizens are reminded to be alert for scam phone calls this tax season. Scammers go to great lengths to sound like they’re from the Internal Revenue Service, but they’re not. For example, they may use fake names or badge numbers, and may also use a fake caller ID number.
The caller may tell victims they owe money to the IRS and have to pay it through a prepaid debit card or wire transfer. The scammer may threaten the victim with arrest if they don’t pay.
On the other hand, they may also tell victims they have a refund due, but they need to share some private information first. IRS officials say the calls can be frightening or intimidating, but that’s not how the IRS does business. They say to avoid getting scammed out of hundreds or thousands of dollars, the best thing to do is just hang up.
Later this spring, four outside agencies will be authorized to contact taxpayers, as part of a new private debt collection program. However, the IRS will provide written notice before transferring someone’s account to a private collection agency. The agency itself will then send a second letter.
The IRS reminds taxpayers that it will never demand immediate payment using a specific payment method like a prepaid debit card, gift card, or wire transfer. The IRS will also never threaten to immediately bring in local police to arrest a taxpayer or ask for credit and debit card numbers over the phone.