As each new year begins, so does tax-scam season. Consumer watchdogs, regulatory agencies and consumer writers like me start warning people about tax cons. Usually, we start ringing the warning bells sometime in January. But this year, Mississippi Attorney General Jim Hood is sending out an early warning about scammers seeking to swindle you out of your tax refunds or scaring you into sending money.
Few things strike fear into the heart of John Q. Taxpayer as a call or urgent letter from the IRS, demanding payment. And of course, crooks know this and are looking to cash in. This week, Hood’s office sent out a news release revealing that they’d received recent reports from Mississippi consumers who were contacted by people claiming to be with the Internal Revenue Service or Treasury Department and demanding payment.
“These con artists are intimidating and sound convincing and can even alter the caller ID to make it look like the IRS is calling,” Hood warned. “The number one thing to remember is that if the IRS needs to contact you, they’ll do it by postal mail first, and they will not threaten to arrest or sue you.” Hood added that the callers usually use frightening language such as, “This is your official final notice — the IRS is filing a lawsuit against you.”
“The caller claims the consumer owes money to the IRS and insists that it be paid promptly through a pre-loaded debit card or wire transfer,” he said. “If the victim refuses to cooperate, the scammer threatens the victim by stating that he or she will be arrested or that a lawsuit will be filed against them.”
Hood recounted another version of the scam, in which the scammer claims the victim has a refund available, but need a bank account number or other private information to process and deposit it. Often, the caller leaves an “urgent” callback request. Crooks have also been known to use fake names and bogus IRS badge numbers.
If you think you owe the IRS any amount, call (800) 829-1040 to get advice on payment. If you get such a call, and know you don’t owe anything, report the incident to the Treasury Inspector General for Tax Administration at (800) 366-4484 or visit www.tigta.gov.
Here are some other tips, courtesy of Hood’s Office of Consumer Protection:
- Don’t answer the phone for a number you don’t recognize or that shows up as your own. If you do answer, hang up as soon as you realize it is a scam. Even answering simple questions in the affirmative or negative could be used to try to scam you.
- Be suspicious of anyone who is vague or evasive in identifying themselves.
- Never wire or send money in any form to unfamiliar people or organizations.
- Don’t give out personally identifiable information; it could expose you to identity theft.
If you suspect your personal information has been compromised or think you’ve been a victim of fraud, identity theft or any other scam, call the Consumer Protection Division at (800) 281-4418. For more tips, visit http://www.ago.state.ms.us/releases/ag-hood-reminds-mississippians-of-fake-irs-collectors/.