Some enterprises and law firms take advantage of individuals in severe need of assistance in addressing their back tax liability to the IRS by making false promises and employing misleading techniques. These businesses typically demand a large upfront fee, maybe in the hundreds of dollars, for their services. They inform customers that they can halt IRS collection action and remedy IRS issues. These firms frequently fail to fulfill the promised tax benefit after collecting their upfront charge. Instead, after repeatedly demanding the same documentation from customers, they determine that the customers no longer qualify, or the IRS rejects their efforts to settle the back tax bill. Some businesses never even file a request with the IRS to settle the obligation.

IRS scams cost people millions of dollars each year. Don’t let yourself become one of them. Here’s a list of recent IRS scams, as well as instructions on how to recognize one and (maybe) get some retaliation.

The Latest IRS Scams

1) ‘Use this Form W-8BEN to provide us with personal information.’

Despite Document W-8BEN, also known as a “Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding,” is a valid IRS form, criminals have modified it to request personal information such as mother’s maiden name, passport numbers, and PIN numbers.

2) ‘Click here for more information about your tax refund.’

These emails are designed to deceive the reader into clicking on links that will take them to a bogus IRS website and expose them to malware. The IRS never sends emails to people inquiring about the status of their tax refunds.

3) ‘You must pay a little charge in order to get your stimulus check.’

According to the Federal Trade Commission, this is a developing fraud tied to the government’s continuing response to the coronavirus. Many Americans will be

eligible for a stimulus check, but the government (including the IRS) does not need anyone to pay anything in order to get the money.

4) `We’re calling from FDIC, and we need your bank information.’

The Federal Depository Insurance Corporation covers bank deposits, ensuring that customers do not lose their whole deposit if a bank fails. It does not, however, send unsolicited mail requesting money, sensitive personal information, bank account information, credit and debit card details, Social Security numbers, or passwords. Scammers posing as FDIC employees are looking for information that they may use to conduct fraud or sell identities.

5) ‘Take this FBI survey’

This is a ransomware technique in which fraudsters send emails purporting to be from the IRS or the FBI. When readers click on a link to a survey that the sender claims is mandatory, the link downloads ransomware, which restricts users from accessing data on their devices unless they pay the fraudsters.

You’ll see a lot of them along the road, and they’re always coming up with new gimmicks, but here are some methods on how you could spot them;

How to identify IRS impersonators and frauds:

• Over the phone, they’re requesting a credit card or debit card number. That is not something the IRS does.
• They prefer that you pay using gift cards, iTunes cards, or prepaid debit cards. The IRS does not accept these types of payment. The IRS delivers paper invoices to people who owe taxes, and payments should always be paid to the United States Treasury, not a collection agency or another business.
• They claim you’ll be jailed, deported, and have your driver’s license revoked, among other things. Your driver’s license, business licenses, or immigration status cannot be revoked by the IRS. Furthermore, the IRS and the Taxpayer Bill of Rights allow you to challenge or appeal what the IRS thinks you owe.
• The form they’re sending or referring to isn’t included on the IRS website. The names of IRS notifications and letters may be found on the IRS website. If the sort of notification you received does not appear on the list, it is most likely not legitimate.
• They have no idea what an HSPD-12 card is. A pocket commission and an HSPD-12 card are the only forms of identification used by real IRS officers. You have the right to inspect these credentials, and you may confirm the information on the HSPD-12 card by contacting the IRS (go here for a list of IRS customer service phone numbers).

How to avoid this mishap

Try to handle your issue with the IRS directly. Call the number on your IRS notice and inquire about collection options. You could be qualified for a monthly payment plan, or you might be able to pay less than the whole amount owed.
Don’t disregard any notifications from the IRS. The issue isn’t going away.
Don’t believe a company’s claim that you’ve “qualified” or are “eligible” for an IRS program to pay off your unpaid taxes. Only the IRS has the authority to make such a conclusion.
Be wary of services that need money in advance.

Even so, if you are a victim of that fraud, you must fight back. Inform the Treasury Inspector General for Tax Administration about your situation (TIGTA). IRS frauds can be reported online at or by calling TIGTA at 1-800-366-4484. Email communications purporting to be from the IRS should be forwarded to phishing@irs.gov. Do not open any attachments or click on any links contained in such emails. Inform the Federal Trade Commission by completing the FTC Complaint Assistant on FTC.gov. Make a note of “IRS Telephone Scam.” Use the form on the Social Security Administration’s website to report Social Security Administration phone imposter scams. Contact your state Attorney General’s bureau if the IRS frauds appear to be imitating a state tax authority rather than the IRS.