The Treasury Inspector General for Tax Administration (TIGTA) is warning taxpayers of a major scam that has hit people in just about every state. TIGTA Inspector General J Russell George said this is the largest scam of its kind that they have ever seen. More than 20,000 people have been contacted with thousands of victims that have collectively paid over $1 million as a result of the scam.
According to reports the caller claims to be from the IRS and states that you owe taxes. They threaten arrest, deportation or loss of a business or driver’s license if you do not pay. They demand payment via a pre-paid debit card or wire transfer.
Don’t be taken! The IRS rarely makes initial contact on a tax debt via the phone. They send a letter. They also DO NOT ask that you pay with a wire transfer or a pre-paid debit card.
If you receive a call from someone claiming to be from the IRS asking for payment here’s what you do:
If you owe, or think you may owe taxes, hang up and call the IRS at 800-829-1040. An IRS worker will assist you.
If you do not owe taxes call and report the incident to TIGTA at 800-366-4484. You can also file a complaint with the FTC at www.FTC.gov. Add “IRS Telephone Scam” to the comments in your complaint.
For more information on tax scams visit www.irs.gov.