At B& J Bookkeeping and Taxes, we specialize in monthly bookkeeping and tax preparation. With tax time far behind us, most people would consider the hassle over until 2016. Unfortunately, some scammers are betting on it and using the time in which tax payers are collecting their refunds to take advantage.
Just earlier this month, a 59 year old man in Rochester was taken for $15,000 in a tax scam. The scammers called his home 
phone several times and claimed he owed the IRS money for back taxes. The scammers also warned there were warrants out with the police department for his arrest, and they would come for him if he didn’t pay the taxes right away. This scared the man enough to use a combination of money grams, prepaid credit cards, and Western Union to pay the amount.
Unfortunately, this is all too common, and I’ve even had clients here in Houston tell me of bogus attempts to collect payments from people pretending to be the IRS or other tax authority, which I was easily able to verify as a scam.
So how can you spot a scam? Here are the characteristics of scammers:
1. IRS scammers call first – The IRS does not call first, and in fact, they rarely call at all. Notice of unpaid taxes is ALWAYS sent through the mail.
2. IRS scammers make demands – Once they confirm your identity (they may even have your social security number), they will make demands that you immediately pay the money. Again, the IRS rarely operates via phone. Those who legitimately owe them money are also offered payment plan options, rather than a “pay me now or else” strategy.
3. IRS scammers request wire transfers – Nigerian lottery scam anyone? In fact, most to all scams involve wire transfers, Western Union, and the like. Few local businesses, including the IRS, use this as their sole or even main form of payment.
4. IRS scammers make threats – Muck like the poor fellow who told he would be arrested, these threats are meant to scare the tax payer into losing their rationale and just opening their wallets to end the threats. In addition to arrests, they also threaten lawsuits, foreclosures, contacting your employer, putting you on some kind of list, and a number of other threats.
5. Their English is how you say: not so good – This is because anyone who tried to run this sort of scam in any of the 50 states or even U.S. territories would be caught immediately and face all sorts of criminal and civil penalties. IRS scams like this must take place overseas where English is rarely spoken, if ever.
What to do If You’re Contacted by an IRS Scammer?
The easiest course of action is to hang up and not bother with them. If you do get them on the line, remind them that if they are really the IRS, they can and should mail you all the materials. Tell them you refuse to discuss the issue over the phone.
Or if you want to express yourself humorously, try doing what this woman did to the IRS scammers.
Watch the IRS’s Official Video on Tax Scamming
Houston Bookkeeping
To learn more about how our expert bookkeeping advice can help you avoid scammers and keep your finances safe, feel free contact us.