IRS Warns On 'New Twist' To Old Phone Scams

Just because it’s summer doesn’t mean that scammers are taking a break. The Internal Revenue Service (IRS) has issued a warning about a new telephone scam.

In the scam, callers posing as IRS representatives advise potential victims that two certified letters were sent to the taxpayer in the mail but were returned as undeliverable. The callers then threaten to arrest the potential victim if a payment is not immediately made through a prepaid debit card. The scammer also tells the victim that the purchase of the card is linked to the Electronic Federal Tax Payment System (EFTPS) system: it is not.

To ensure that the potential victim doesn’t back out, the caller warns the taxpayer not to contact their tax preparer, an attorney or their local IRS office until after the tax payment is made. This should be a red flag. You should always have the opportunity to contact your tax professional before resolving a tax dispute. Additionally, if you’re not sure that you owe taxes, you always have the opportunity to hang up and call the IRS directly (1.800.829.1040) for more information. Don’t be pressured into making a spur of the moment payment.

The scammers are hoping that you’ll recognize the EFTPS: it’s a real government system used for paying your federal taxes electronically. Paying taxes through EFTPS is free through the U.S. Department of Treasury and does not require the purchase of a prepaid debit card, so don’t be fooled. Also, the EFTPS is an automated system, which means that you won’t receive a phone call from the IRS. It’s one of a number of ways that you can pay what you owe (you can find out more about how to pay your taxes here).

If all of this sounds familiar, it is. Scammers have been targeting taxpayers by phone for years. In the most popular version of the scam, IRS impersonators call and demand payments on iTunes and other gift cards.