New IRS Tax Scam Focuses on Electronic Payments

New IRS Tax Scam Focuses on Electronic Payments

July 27, 2017

The Internal Revenue Service issued a warning on June 15 about a new scam linked to the Electronic Federal Tax Payment System (EFTPS), where scammers call to demand an immediate tax payment through a prepaid debit card. This fraud is being reported across the country, so all taxpayers should be alert to the details.

The scammer claims to be from the IRS and tells the victim about two certified letters purportedly sent to the taxpayer in the mail but returned as undeliverable. The scammer then threatens arrest if a payment is not made through a prepaid debit card. The impostor also tells the victim that the card is linked to the EFTPS system when, in fact, it is entirely controlled by the scammer. The victim is also warned not to contact their tax preparer, an attorney or their local IRS office until after the tax payment is made.

REMEMBER: The IRS doesn’t contact taxpayers by email, text messages or social media channels to request personal or financial information. In addition, the IRS does not threaten taxpayers with lawsuits, imprisonment or other enforcement action.

Know Who to Contact

  • Contact the Treasury Inspector General for Tax Administration to report a phone scam. Use their “IRS Impersonation Scam Reportingâ€. You can also call 800-366-4484.
  • Report phone scams to the Federal Trade Commission. Use the “FTC Complaint Assistant†on FTC.gov. Please add “IRS Telephone Scam” in the notes.
  • Report an unsolicited email claiming to be from the IRS, or an IRS-related component like the Electronic Federal Tax Payment System, to the IRS at phishing@irs.gov.

If you have questions about this issue or want to learn how REDW can assist with personal or business tax-related matters, please contact Sandy Abalos.

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