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