Current:Home > MarketsThe IRS has ended in-person visits, but scammers still have ways to trick people-DB Wealth Institute B2 Reviews & Ratings

The IRS has ended in-person visits, but scammers still have ways to trick people

lotradecoin exclusive trading tools ​​​​​​​View Date:2024-12-25 14:42:13

The IRS' practice of unannounced visits ended immediately on Monday, in an effort to reduce public confusion and put taxpayer and employee safety first. But the sudden stoppage stemmed from one primary factor − scam artists impersonating IRS agents.

For decades, IRS agents showed up to households and businesses in-person to address tax issues, but the growth in scam artists impersonating IRS agents would often confuse taxpayers and local law enforcement, said Danny Werfel, IRS Commissioner, in a prepared statement.

"These visits created extra anxiety for taxpayers already wary of potential scam artists," Werfel said. "At the same time, the uncertainty around what IRS employees faced when visiting these homes created stress for them as well. This is the right thing to do and the right time to end it."

What is a legitimate way the IRS would contact you?

IRS agents will make in-person visits on the rare occasion an incident requires but will primarily send appointment letters, known as 725-B, to schedule a follow-up meeting, through the U.S. Postal Service.

If an IRS agent does show up in person, you can verify their identity by asking for their IRS-issued credentials, also known as a pocket commission, or ask for their HSPD-12 card, which is an identification for federal employees.

You can also verify an enrolled agent by emailing [email protected], and including the agent's first and last name, and their enrolled agent number. The IRS answers within 72 hours of inquiry.

The IRS does not send text messages or contact people through social media to get personal information or collect a tax debt. They do not demand immediate payment using a prepaid debit card, gift card or wire transfer, or threaten to get law enforcement involved for not paying. They also don't call unexpectedly about a tax refund or demand that taxes be paid without giving taxpayers the chance to question or appeal the amount owed.

What are the current IRS scams?

Even though in-person unannounced visits have stopped, there are still a plethora of IRS scams that people can fall for via text, email or mail:

  • The Economic Impact Payment scheme: This scam involves emails with subject lines such as, "Third Round of Economic Impact Payments Status Available." The third round of stimulus payments occurred in 2021, and scammers use this real-world tax event to trick people into clicking on a link to complete a fake application on a website that steals people's personal information.
  • "You may be eligible for the ERC" claim: The Employee Retention Credit, also known as Employee Retention Tax Credit was a pandemic-related credit that select employers qualified for. Scammers use this to lure people into claiming eligibility, without discussing how they are eligible. This scam urges people to take immediate action and often targets people through social media, radio, unsolicited phone calls, emails and fake government letters that have fake agency names and urges immediate action.
  • "Claim your tax refund online" scheme: Scammers use this tactic to tempt people into thinking they have missed their tax refund. These emails are full of misspellings and urge people to click a false link.
  • The "Help You Fix-It" text scheme: Scammers target people by telling them there is something wrong with their return, and if they click on a link, they can resolve it.
  • "Delivery Service" scam at your door: This is a mail scam that leads people to believe they are owed a refund. The mail arrives in a cardboard envelope from a delivery service and contains a letter with the IRS masthead and wording that the notice is "in relation to your unclaimed refund."

How to report an IRS scam

If you see an IRS scam, here is how to report it:

  • Impersonation scams are reported to the Treasury Inspector General for Tax Administration on the IRS Impersonation Scam Reporting webpage.
  • Phone scams are reported to the Federal Trade Commission using the FTC Complaint Assistant. Add "IRS Telephone Scam" in the notes.
  • Unsolicited emails claiming to be from the IRS can be emailed at [email protected].

veryGood! (51824)