A sophisticated telephone scam targeting taxpayers is reaching into all parts of the U.S., and is "the largest scam of its kind that we have ever seen," according to federal officials.

 

Callers claiming to be representatives of the IRS warn their intended victims that they owe taxes, which must be paid using a pre-paid debit card or wire transfer. The scammers threaten the victim with arrest and prosecution, deportation, or loss of a business license or driver's license for non-compliance.

 

The Treasury Inspector General for Tax Administration has received more than 20,000 complaints about this particular scam. It is estimated that more than $1 million has been paid by unwitting taxpayers who believed they were dealing with the IRS.

 

The callers often know the last four digits of the victim's social security number, and manipulate the caller ID to show an IRS message, leading many people to believe the calls are legitimate. However, if a caller uses threatening language or requires immediate payment, these are signs that it is not a real IRS agent.

 

If you receive a call that you believe may be part of this widespread scam, do not give out any personal or financial information, and hang up on the caller. Report the attempt to the IRS by calling 800-829-1040.

 

Taxpayers should also be alert for e-mail and social media scams. The IRS never requests personal or financial information by e-mail, texting, or any social media channel. If you receive a suspicious e-mail, do not open any attachment or click on any links contained in the e-mail. Instead, forward the e-mail to the IRS at phishing@irs.gov.

 

For additional tips on how to protect your personal information, or for other tax-related questions, please contact us.