WASHINGTON – With tax season upon us, U.S. Senator Chris Coons (D-Del.) joined the Treasury Department’s Inspector General to urge citizens to be alert for possible phone scams during tax-filing season. Thousands of people each year report receiving phone calls from individuals claiming to represent the Internal Revenue Service in an attempt to defraud them.

“Delawareans work hard for their money — too hard for some criminal to steal it from them in a phone scam,” Senator Coons said. “Americans have lost millions to this widely perpetrated phone scam that can be traced internationally. We have to talk to our neighbors and family members to make sure they know that this scam is actually happening and to urge them not to be victims.”

The U.S. Treasury Inspector General for Tax Administration has received reports of roughly 290,000 contacts since October 2013 and has become aware of nearly 3,000 victims who have collectively lost over $14 million as a result of the scam, in which individuals make unsolicited calls to taxpayers fraudulently claiming to be IRS officials and demanding that they send cash via prepaid debit cards.

“The increasing number of people not only receiving but accepting these unsolicited calls from individuals who fraudulently claim to represent the IRS is alarming,” Inspector General J. Russell George said.  “At all times, and particularly during the tax filing season, we want to make sure that innocent taxpayers are alert to this scam so they are not harmed by these criminals,” he said, adding, “Do not become a victim.”

Inspector General George noted that the scam has hit taxpayers in every state in the country. Callers claiming to be from the IRS tell intended victims they owe taxes and must pay using a pre-paid debit card or wire transfer. The scammers threaten those who refuse to pay with immediate arrest, deportation, or loss of a business or driver’s license.

The IRS usually first contacts people by mail – not by phone – about unpaid taxes.  And the IRS won’t ask for payment using a pre-paid debit card or wire transfer.  The IRS also won’t ask for a credit card number over the phone.

The callers who commit this fraud often:

  • Utilize an automated robocall machine.
  • Use common names and fake IRS badge numbers.
  • May know the last four digits of the victim’s Social Security      Number.
  • Make caller ID information appear as if the IRS is calling.
  • Send bogus IRS e-mails to support their scam.
  • Call a second or third time claiming to be the police or department of motor vehicles, and the caller ID again supports their claim.

If you get a call from someone claiming to be with the IRS asking for a payment, here’s what to do:

  • If you owe Federal taxes, or think you might owe taxes, hang up and call the IRS at 800-829-1040. IRS workers can help you with your payment questions.
  • If you don’t owe taxes, fill out the “IRS Impersonation scam” form on TIGTA’s website, www.treasury.gov/tigta or call TIGTA at 800-366-4484.
  • You can also file a complaint with the Federal Trade Commission at www.FTC.gov.  Add “IRS Telephone Scam" to the comments in your complaint

Taxpayers should be aware that there are other unrelated scams (such as a lottery sweepstakes winner) and solicitations (such as debt relief) that fraudulently claim to be from the IRS.

If you or someone you know are a victim of an IRS scam, please call Senator Coons’ constituent services representatives at 302-573-6345.