Question: Those IRS scams are as bad as ever. An aggressive person called saying I could go to jail if I didn’t pay immediately. I hung up right away but I wonder if there’s more I should have done?
Q: It’s tax season so please warn people about con artists who pretend to be from the Internal Revenue Service. They call on the phone and try to scare you into paying money you don’t really owe — and it doesn’t go to the IRS.
Answer: Consider it done. Kokua Line regularly warns readers to beware of tax cons, which typically come in the form of telephone calls or emails. But the message bears repeating, especially now with tax filing under way for the new year. The Treasury inspector general for tax administration describes the phone fraud perpetuated by individuals misrepresenting themselves as IRS employees as a problem in every state. In totality nationwide, there have been thousands of victims taken for millions of dollars.
The con artists falsely claim that the IRS is suing the taxpayer and demand cash paid via a prepaid debit card or wire transfer. The scammers threaten that the taxpayer faces a criminal charge, immediate arrest, deportation or loss of a business or driver’s license.
“The callers are aggressive, they are relentless and they are ruthless,” J. Russell George, the inspector general, said in a news release. “Once they have your attention, they will say anything to con you out of your hard-earned cash.”
If you get a suspicious call claiming to be from the IRS and demanding pay, here’s what you should do:
>> Hang up the phone immediately. Don’t engage the caller.
>> Fill out the “IRS Impersonation scam” form on the inspector general’s website, treasury.gov/tigta, or call (800) 366-4484.
>> You can also file a complaint with the Federal Trade Commission at FTC.gov. Add “IRS Telephone Scam” to the comments in your complaint.
>> If you owe federal taxes, or think you might, call the IRS at (800) 829-1040. Legitimate IRS staff can help you with your payment questions.
The IRS states that it generally first contacts people by mail about unpaid taxes, not by phone. The IRS will not ask for payment using a prepaid debit card or wire transfer. The IRS also will not ask for a credit card number over the phone.
According to the inspector general, scammers who perpetuate the phone fraud generally deploy common tactics. They may:
>> Use an automated robocall device to reach you
>> Know the last four digits of your Social Security Number
>> “Spoof” caller ID information to make it appear as if the IRS is calling
>> Follow up by sending bogus emails that falsely appear to come from the IRS
>> Call a second or third time claiming to be the police or department of motor vehicles, with the caller ID again supporting the claim (because it’s been spoofed).
>> Give common names and IRS badge numbers (all fake).
The lengths to which these scammers go, especially with the electronic trickery, fool many victims. Don’t be afraid to hang up the phone. Save yourself from a costly con.
Lastly, if you are so inclined you can also register the incident with the Better Business Bureau’s scam tracker, a searchable, online database that is simple to use. Find the link at bbb.org/scamtracker/hawaii/reportscam.
A quick check showed several instances of the IRS phone fraud reported in Hawaii just this week.
Q: Are state tax refunds going to be late again this year?
A: Quite possibly. The state Department of Taxation has posted a notice on its website warning that “for the 2016 tax season, the department has adopted additional safeguards that may delay tax refunds for some taxpayers, but not all, for up to 16 weeks. We encourage taxpayers who are expecting refunds to file early. By filing early, taxpayers are more likely to receive their refund quicker. Interest may be paid if your refund is not issued by July 20. Please be assured that we are doing everything we can to expedite the processing of all tax returns and ask for the public’s continued patience.”
Write to “Kokua Line” at Honolulu Star-Advertiser, 7 Waterfront Plaza, Suite 210, 500 Ala Moana Blvd., Honolulu 96813; call 529-4773; fax 529-4750; or email kokualine@staradvertiser.com.