01/08/2010

We had a number of clients last year contact us with a wide array of identity theft schemes disguised as notices from the Internal Revenue Service. Some of them looked pretty convincing complete with letterhead, web site links, and just enough personal information to be effective—and frankly, pretty scary. It’s a new year and a new phishing season for clever pirates who want to wreak havoc in your life, so please beware.

STRAIGHT FROM THE LIPS OF THE IRS: “Generally, the IRS does not send unsolicited e-mails to taxpayers. Further, the IRS does not discuss tax account information with taxpayers via e-mail or use e-mail to solicit sensitive financial and personal information from taxpayers. The IRS does not request financial account security information, such as PIN numbers, from taxpayers.” PERIOD. If you get an unsolicited email from the IRS – IT IS NOT FROM THE IRS. I have NEVER received unsolicited email from the IRS and neither will you. And I have never received an unsolicited FAX from the IRS either – there are fax scams out there, too. Watch out.

That said, I have had the IRS TELEPHONE me “unsolicited” to discuss client matters and the IRS may call you “unsolicited.” So how do you know if it is the IRS? Because it really ISN’T UNSOLICITED. You had to have indicated on a form that it was OK to call you or OK for the Service to call me. When the IRS calls me, it is usually as a result of correspondence from our office to them about you, OR we have a standing Power of Attorney—something a Phisher has no knowledge of. If someone calls you and says it is the IRS and starts asking for your Social Security Number and bank account information – be suspicious. State politely that you do not know that you are speaking to the IRS and ask the person to correspond with you by mail and that you will respond timely. If the representative asks for your mailing address, politely say, “If you are the IRS, please use the address on my most recently filed tax return. You should have that information as well as my Social Security Number.” Virtually 100% of the time, you will have already received a written notice from the IRS stating the issue at hand and asking for YOU to call THEM. Please do not ignore those notices. It is much easier to work with the IRS IF you are responsive.

The IRS has a great web site at www.irs.gov. Right on the home page, you will find “Report Phishing.” If you get a phishing email or fax or a suspicious phone call, REPORT IT. You’ll find a good article there as well outlining the scams that are being reported by citizens. Interesting stuff. Sort of “The Snopes” of IRS.

What if an IRS agent shows up unannounced at your home or business demanding payment? Or information or both? IRS collections personnel DO show up unannounced pretty regularly. Of course they carry identification and you have a right to see it and photocopy it. You will have a pretty good idea IF you owe money and haven’t been good about paying it—in other words, the visit is not unexpected, really. Your knowledge of failure to pay outstanding taxes legitimizes a surprise visit. The collections person should have A LOT of information about you and has the right to ask you for identification in order to discuss the case with you. Try giving them only the last 4 digits of your SSN. They also have the right to set up payment plans that require divulging bank accounts, but do not ever give agents a PIN or other secret code or password. A legitimate agent will never ask for that information.

But if you don’t owe money or don’t think you owe money and haven’t been in long discussions with the Service, this could also be a scam. Ask the agent to wait while you call the IRS. 1-800-829-1040 for individuals and 1-800-829-4933 for businesses. After punching in your information at the prompts, I find that the best way to get to a human being is simply to not respond to Press This Or That. Be prepared for up to an hour on hold. The agent can wait in his/her car. If you are feeling threatened in any way or need help, call for back up – your CPA, your attorney, the local police (if you think the person is truly a pirate).

Be careful out there in the ether.