Monday, March 21, 2016

Phony IRS Tax Scam Telephone Calls

         I got home the other night and my old fashion answering machine was blinking. You know it’s the kind you have to push a button to hear the message. Most cold callers when they realize it is an answering machine simply hang up. But this message was a long one and I listened to it several times. It was fun. Maybe we tax lawyers look for a few laughs now and then in odd places. The guy on the line said he was from IRS. He spoke firmly in a non-regional American accent. His message was clear: a warrant had been issued for my arrest for back taxes which were due. He conveniently mentioned no particular years or amounts. The earnestness of his message was impressive. It ended with a phone number and a request that I call immediately to avoid enforcement action, loss of my assets, incarceration and financial penalties. It was perfect. It set the stage for this Bar blurb. I was frankly tempted to call the number and pose as an Assistant US attorney assigned to investigate the caller but realized that may in fact be breaking the law. I considered also playing along with the scam and see how far it would go. I didn’t do that either. I just let it be and relished the fact that someone would call a former IRS agent, IRS tax lawyer, Chairman of the tax committee with 43 years of experience in the tax litigation field and hope to convince me to turn over financial information. How could these phony IRS guys think that anyone would fall victim to their ploy? Well recently IRS Treasury Inspector General for Tax Administration announced that his office had received reports of 896,000 of such contacts since October 2013 and have become aware of over 5000 victims who have collectively paid over $26.5 million as result of the scam. In other words these phone scams work. There are also other varieties of call that claim the taxpayer is entitled to a huge refund and then requests Social Security and other financial information in order to process the gigantic payout. The IRS Commissioner was quoted as saying: “We continue to say, if you are surprised to be hearing from us, then you are not hearing from us.” The IRS has included phone call tax scams on their 2016 dirty dozen list. So let’s be clear about this.  IRS will never call to demand immediate payment or call about taxes owed without first mailing a bill to a taxpayer. They will never demand payment without giving the opportunity to question or appeal the amount they say is owed. In income tax cases an elaborate procedure is provided before IRS can take a valid assessment and bill for taxes owed. Some of these notices must be sent certified mail return receipt requested. IRS would never require use of a specific method of payment such as a prepaid debit card. IRS does not ask for credit or debit card numbers over the phone. And though it sounds silly IRS will not and cannot bring in local police or other law enforcement groups to arrest anyone for not paying taxes. IRS suggests of course not giving out any information and hanging up immediately on the phony call. They would also like taxpayers to report the contact to the Treasury Inspector at 800-366-4484. They also remind taxpayers that that if they do in fact owe taxes they should call IRS at 800-829-1040 or perhaps their favorite tax lawyer. There you go. So any lawyer who receives one of these calls may wish to have some fun with them and let me know how you make out.

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