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It’s scary enough to be contacted by a tax agency like the IRS or OTC. But beware of the increasing number of tax scams that target us by posing as government officials. The fake tax collector hopes to trick unsuspecting victims into giving up personal information and money.

Anyone can fall victim to a fake tax collector, but these scams most often target older adults. The IRS has identified trends that show increasing activity targeting unsuspecting individuals by posing as IRS agents. Victims are pressured to make payments under the pretense of urgency. Payments are often requested using unconventional methods, such as gift cards or wire transfers.

These fake tax scammers use advanced techniques to create credibility, including manipulating caller IDs to appear legitimate. Often, the scammers impersonate representatives of government agencies, such as the IRS, Social Security Administration, Medicare, and others. Scammers often invent urgent scenarios, such as outstanding tax debts. Using this fake urgency, the scammers insist on immediate action without allowing time for reflection.

The IRS and most tax authorities will notify you by mail if there is a problem. They are not likely to bring the matter to light by phone, email, or text message. If you receive such a message, be cautious when returning a call to the number provided or the number shown on the caller ID. You can contact IRS Customer Service at (800) 829-1040 to verify. You can also verify your account details by setting up a secure account at IRS.gov.

If you receive a suspicious contact, please report that contact by visiting the Treasury Department’s Office of Inspector General for Tax Administration hotline page and using the IRS Identity Fraud Reporting Form or by calling (800) 366-4484.

Please note these important points:

• The IRS never requires immediate payment by prepaid credit card, gift card, or electronic transfer. If taxes are owed, the IRS will usually send a bill in the mail first.
• The IRS would never threaten to involve local police or other law enforcement agencies.
• The IRS will never demand payment without providing an opportunity to dispute or appeal the amount owed.
• The IRS will never ask you for credit, debit or gift card numbers over the phone.

By staying alert and educating ourselves about these types of scams, we can all protect ourselves from financial loss and identity theft. Please be cautious, especially with unsolicited communications about tax matters.

The U.S. Department of Justice has created the National Elder Fraud Hotline to combat attacks on older Americans. If a person has been a victim of an elder fraud scheme, they can contact the National Elder Fraud Hotline at (833) FRAUD-11 (833-372-8311).

Mark O. Neumeister, CPA, CGMA, is a partner at Arledge, the largest locally owned accounting firm in the Oklahoma City metropolitan area. Arledge is a recognized industry leader in the accounting industry, providing practical solutions in the areas of tax planning, auditing, consulting, accounting advisory and client accounting.

This article contains general information only and does not constitute tax advice or any other professional service. Before making any decisions or taking any action that could affect your income taxes, you should consult a professional tax advisor. This article is not intended to, and cannot be used to, avoid future penalties that may be imposed by the Internal Revenue Service.