You get a call from a scammer pretending to be with the IRS, threatening you’ll be arrested if you don’t pay taxes you owe right now. You’re told to wire the money or put it on a prepaid debit card. The scammer might threaten to deport you or say you’ll lose your driver’s license. Some scammers even know your Social Security number, and they fake caller ID so you think it really is the IRS calling. But it’s all a lie. If you send the money, it’s gone.
The Federal Trade Commission advises that if you get illegal sales calls, robocalls, or fake IRS calls, it’s best to ignore them. Don’t interact in any way. Don’t press buttons to be taken off the call list or talk to a live person or call back. When you have a tax problem, the IRS will first contact you by mail. The IRS won’t ask you to wire money, pay with a prepaid debit card, or share your credit card information over the phone. If you get fake calls, file a complaint with the Treasury Inspector General for Tax Administration at tigta.gov. You also can file a complaint with the FTC at ftc.gov/complaint. If you’re concerned there’s a real tax problem, call the IRS directly at 800-829-1040.
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Teaching Suggestions
- Ask students to make a list of steps that taxpayers can take to protect themselves from tax scammers.
- Why do scammers prey on the most vulnerable people, such as the elderly, newly arrived immigrants and those whose first language is not English?
Discussion Questions
- What can the IRS and other governmental agencies do to catch and punish criminals impersonating IRS agents?
- How can taxpayers protect themselves from scam artists?
- What should you do if you believe you owe federal income taxes?
Melissa Hart
Focus on Personal Finance, 7e 