Each year, millions of people across the US are swindled by scammers claiming to be IRS representatives and using deceitful tactics to steal money. IRS impersonation scams have been an ongoing problem for years, costing victims over $85 million in the last decade alone, as reported by the Treasury Inspector General for Tax Administration (TIGTA). Furthermore, individuals from certain states are targeted more, with California residents having suffered the greatest financial loss from these IRS impersonation scams. Given the prevalence of this issue, TIGTA has ramped up efforts to combat these scams. Below, we provide a quick background on IRS impersonation scams before covering the ways that the government has responded.
What are IRS Impersonation Scams?
Simply stated, scammers act like employees of the IRS to collect sensitive personally identifiable information (PII), request funds, and ultimately steal money from unsuspecting taxpayers. Scammers typically contact taxpayers on the telephone, but they also use communication on social media, emails, and text messaging that contain malicious links and attachments used to steal information. The impersonators go as far as using IRS logos and seals on letters, emails, and messages to try and make them seem official. Scammers often tell the taxpayers that they owe additional taxes that will result in severe penalties if they don’t pay immediately. In recent months, scammers have also been stealing taxpayer information by telling victims they need it to release an Economic Impact Payment or Child Tax Credit.
In the last ten years, over 2.5 million Americans filed a report that they had been contacted by individuals claiming to be IRS employees. Experts, however, say that this doesn’t show the full extent of IRS impersonation scams because of the large proportion of taxpayers who are contacted but do not file a report.
How is the Government Eradicating IRS Scams?
Multiple agencies that are part of the federal government have made efforts to reduce and put an end to IRS impersonation scams. For example, in the past decade, TIGTA has led nearly 900 investigations related to IRS impersonation scams, leading to nearly 200 individuals being collectively sentenced to more than 900 years of imprisonment. While these figures certainly show some progress, there still remains a significant amount of work to be done.
With each passing year, scammers become more cunning and use more elaborate techniques to steal money and information. As a result of this, the government is making a big push to educate taxpayers about IRS scams–how they work, the different techniques used, and how to recognize an impersonator. Major efforts are underway to create informational videos, toolkits, and communication campaigns. On June 10th, TIGTA released a public service announcement, available in both English and Spanish, on their YouTube channel. The 65-second video features useful tips for taxpayers, such as:
- The IRS always initiates communication by mail first.
- The IRS will never threaten to arrest or deport you.
- The IRS does not request payment by phone, text, email, or gift cards.
- Scams can be reported on www.tips.tigta.gov
To avoid becoming a victim, people must stay vigilant against schemes and scams. As the nation’s leading tax law firm, our top priority at Victory Tax Lawyers is to be an ally for individuals and corporate taxpayers with simple to complex tax matters. If you believe that you’ve received official communication from the IRS, our experts are always here to walk you through your tax matters and achieve the best possible outcome.
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