Beware of SCAMS

Be wary.

There are numerous scams out there that target vulnerable citizens. You need to protect yourself and be suspicious of everyone and everything when it comes to your personal finances.

Below are some tips for avoiding scams:

You can follow the link below to the IRS website, where they explicitly note signs of scams so you can avoid them. https://www.irs.gov/uac/five-easy-ways-to-spot-a-scam-phone-call

The IRS does not:

1. Call you to demand immediate payment. We will not call about taxes you owe without first mailing you a bill.

2. Demand that you pay taxes without giving you the chance to question or appeal the amount they say you owe.

3. Require you to use a certain payment method for your taxes, such as a prepaid debit card.

4. Ask for credit or debit card numbers over the phone.

5. Threaten to bring in local police or other law-enforcement to have you arrested for not paying.

The IRS does not use emails.

If you receive an email from the IRS, this a sure scam. Do not wire money or even respond to the email. Pass along the information to a tax professional, such as a CPA. As tax professionals, we see all types of scams and are usually able to recognize them quickly. Reporting the scam to IRS allows them to go after perpetrators and shut them down so they cannot target other innocent victims.

NOTE: There are other taxing authorities that do use email, but the preferred communication method of the IRS is to send letters.

If you receive a call from someone who claims to represent the IRS...

Note the number they are calling from. Type the number in a Google search and see if SCAM comes up on message boards associated with the number .

The IRS will not threaten to "sue" you in order to collect money that you owe.

The IRS has the power to garner wages from your paycheck, put a lien on your property and confiscate funds directly from your bank account. They don't need to file a lawsuit against you, so anyone threatening legal action against you is definitely a scam artist.

The IRS does not demand immediate payment over the phone.

They will typically send letters and give you the opportunity to respond or question the amount due.

Even if you do owe money...

Regarding any form of communication that you receive from a taxing authority- whether it's the IRS or a state or local taxing body- you should not just pay right away, even if you agree that you do in fact owe money.

There are often ways to lower the amount owed and reduce the penalties and interest associated with amounts due. The initial reflex to pay off those pesky callers so they will go away is usually the wrong method of dealing with a tax bill.

Contact a tax professional to:

A) Determine if the claim is legitimate,

B) Mitigate the amount owed.