Owe the IRS Money? Common Tax Scams You Need to Watch For

Navigating a tax bill can be stressful but falling victim to a scammer while you’re trying to resolve it is even worse. Fraudsters can target individuals with outstanding tax debts, using the situation to steal money and personal information. The IRS offers several legitimate options to help you manage your tax payments, from payment plans to online accounts. However, each of these official programs creates a potential opening for fraudsters to exploit.

Avoiding Payment Scams

Scammers thrive on creating a sense of urgency and fear, often impersonating IRS officials to create fake government agencies, or use aggressive tactics to pressure you into acting without thinking.

• The IRS will not initiate contact by phone, email, or text. The IRS’ first contact with you will always be a letter in the mail. If you receive an unsolicited call, text, or email from someone claiming to be from the IRS, it is a scam.
• Scammers demand immediate payment and threaten you. Fraudsters will often threaten to have you arrested, call law enforcement or immigration officials, or revoke your driver’s license. They create panic to prevent you from verifying their claims.
• They demand payment in a specific, untraceable way. Common tactics are demanding payment via gift cards, prepaid debit cards, cryptocurrency, or wire transfers.
• Offer in Compromise “mills”, make unrealistic promises. Be wary of companies that guarantee they can settle your tax debt for “pennies on the dollar.” These fraudulent organizations charge excessive fees for services they never deliver, leaving you in more debt.
• Fraudsters offer to set up your IRS Online Account for you. This is a ploy to steal your sensitive data, such as your Social Security Number, bank account information, or photo ID. They can use this information to file fraudulent tax returns or commit identity theft.

Taking the Next Steps After a Scam

If you have been targeted by one of these, or any other type of tax scam, your next steps are important.

1. Stop interacting and do not give any personal information to the scammer.
2. Report the scam to the IRS and file a police report.
3. Protect your identity by setting up an Identity Protection PIN to prevent a scammer from filing a tax return using your social security number.
4. Contact your bank to get new bank account numbers and debit/credit cards.
5. Contact the Social Security Administration if you suspect that your Social Security number has been compromised.
6. Place a fraud alert on your credit reports by contacting one of the three major credit bureaus (Equifax, Experian, or TransUnion). That bureau will alert the other two. A fraud alert makes it harder for someone to open new accounts in your name.

After taking the initial steps, continue to monitor your account statements for any fraudulent activity. You can also contact WSFS directly by visiting a local banking office or calling us at 888.973.7226. Navigating tax debt can be complex, but you don’t have to do it alone. Our team of trusted advisors are here to help.