Scams Feed

Identity thieves are once again targeting taxpayers, this time with a twist on the pervasive telephone tax scam. In its original version, which the Internal Revenue Service and other government agencies have dubbed the biggest tax scam ever, crooks pretend to be IRS employees and demand immediate payment by prepaid debit card or wire transfer of a purported tax owed by the victims. 3 tweaks to telephone scam: The ID thieves are still impersonating IRS agent and they still want our money ASAP via a debit card. But this time they've refined their fake story in three ways regarding the... Read more →


Lots of taxpayers today, June 15, are making their second estimated tax payment electronically. That makes the Internal Revenue Service very happy, as it works to get the majority of taxpayers dealing with tax matters online. Ultimately, the IRS is looking to fully implement its Future State with its mostly electronic tax transactions. To that increasingly electronic end, the IRS this week announced expansions to its online taxpayer account tool. This e-option debuted last December and lets taxpayers have online access to their IRS accounts. Expanded account options: Initially, the Taxpayer Online Account online tool let those who registered for... Read more →


Most of us suspected it would happen. We just didn't think it would happen so soon. "It" is apparent disregard by some private debt collectors of the rules established in connection with the collection agencies' latest congressionally mandated foray into federal tax collection. Treasury Inspector General for Tax Administration J. Russell George tells a House Appropriations subcommittee last week of his watchdog agency's concerns about the latest use of private collection agencies to bring in delinquent federal taxes. (Click image to watch full hearing on YouTube.) Private collection agencies are approving installment agreements with delinquent taxpayers beyond what the law... Read more →


Last week's cyberattack has affected more than 200,000 computers across 150 countries. The ransomware program known as WannaCry encrypts information on computers and demands targeted users pay $300 in order to regain access to their machines. The good news here in the U.S. is that so far, no federal systems have been affected by the global ransomware attack, according to Homeland Security Adviser Tom Bossert, who appeared at today's regular White House press briefing. The bad news is that a few companies have been hit and the government is still unaware of who was behind the attack. And as this... Read more →


The Internal Revenue Service's third attempt to bring in overdue tax money by using private debt collectors has been in place for less than a month, but some House members are already trying to halt it. Opponents of the program question not only the collection system's costs and efficiency. They also worry that the use of private bill collectors will make it easier for crooks to create even more tax scams. Rep. John Lewis makes his opening statement at last week's Ways and Means Oversight Subcommittee hearing on the 2017 tax season. During his remarks, Lewis announced the introduction of... Read more →


Is that really the Internal Revenue Service knock, knock, knocking on your door? That's a concern shared not just by individuals who find people claiming to be with the federal tax collector's office, but also the IRS itself. "Many taxpayers have encountered individuals impersonating IRS officials – in person, over the telephone and via email," noted the IRS in a statement issued this week. In-person tax scams: While email phishing attempts and the still pervasive fake IRS agent telephone tax scam are still going strong — and could even see a surge as the cons are tweaked to incorporate the... Read more →


Indian police on Saturday, April 8, arrested the man they believe is the mastermind behind what has been called the most pervasive U.S. tax scam ever. But although he's in custody, his alleged criminal legacy continues. On Monday, April 10, the Internal Revenue Service issued yet another warning about phone scams and email phishing schemes. International arrest: Sagar "Shaggy" Thakkar was arrested at the Mumbai airport as he re-entered India this past weekend, according to various international reports. Indian law enforcement say Thakkar, who allegedly started scam call facilities in Mumbai and Ahmedabad, had fled the country and traveled to... Read more →


And so it starts. Again. As mandated by Congress, the Internal Revenue Service has turned over some delinquent tax accounts to private debt collectors. These collection agencies will begin calling affected individuals this week. Yes, private debt collectors are again calling about unpaid federal taxes. Worried much? I am. New tax scam potential: I spelled out my primary concern in a post last month about the private collection letter the IRS had finalized. "If you think this opens the door -- and windows and attic vents -- wide for tax scammers, you are probably correct. And you are not alone.... Read more →


Have you made it through April Fools' Day without getting pranked? Good for you. Now be sure you don’t fall for a costly tax scam as the 2017 filing season winds down. Tax criminals are looking to steal identities and then use them to file for fraudulent tax refunds from not just taxpayers, but also the tax preparers who help us file. On Friday, March 31, the Internal Revenue Service, state tax departments and the tax industry — collectively known as the Security Summit, which was formed back in March 2015 to fight growing tax crimes — warned tax professionals... Read more →


Aquarena Springs in San Marcos, Texas, was famous in its heyday, part of which just happened to coincide with my youth, as a wonderful water park. No visit to relatives in nearby San Antonio was complete until we headed to Aquarena to ride in a glass-bottom boat, marvel at the mermaids and cheer Ralph the swimming pig as he made his famous swine dive. Click fish image for full video view of Aquarena Springs from a glass-bottom boat. The park is gone, replaced by a water research program under the auspices of Texas State University, or Southwest Texas State as... Read more →


Remember that assurance from the Internal Revenue Service that its agents never call you about an overdue tax bill. That's changing. A call from a bill collector can seem as terrifying as the one Drew Barrymore received in "Scream." Even worse? A collection agency call about an overdue IRS bill. The IRS is about to turn over some delinquent tax accounts to private debt collectors. Again. And those companies' employees, as subcontracting agents of the IRS, will be calling folks about the money they owe the U.S. Treasury. Bill collecting concerns, scams: If you think this opens the door --... Read more →


Phishing. Phone scams. Identity theft. Unscrupulous tax preparers. Sound familiar? It should. Those illegal actions once again top the Internal Revenue Service's annual Dirty Dozen list of tax scams. Today's tax con artists are the modern day equivalent of yesteryear's snake oil salesmen, hustlers who convinced folks to buy products that could not possibly work as advertised. In all cases, past and present, the victims end up losing their money. ("The Snake Oil Salesman" by Morgan Weistling is available for purchase at Artifacts Gallery. The link to the artwork is not a paid endorsement.) As I noted back on Groundhog's... Read more →


It's Groundhog Day and for many folks that brings to mind the Bill Murray movie of the same name more than the Pennsylvania rodent who purportedly can forecast weather. Bill Murray as weatherman Phil Connors in the 1993 film "Groundhog Day." (Photo courtesy Columbia Pictures) In case you haven't seen it, in the 1993 Harold Ramis movie Murray is a television weatherman who, after being dispatched to Punxsutawney, Pennsylvania, on Feb. 2 to cover groundhog Punxsutawney Phil's emergence from his burrow, finds himself living the same day over and over and over again. Murray's character Phil (we see what you... Read more →


Remember that tax scam last spring where crooks posing as company executives sent emails asking for workers' payroll data? It was the one that fooled lots of folks, including a Milwaukee Bucks employee who thought that the message really did come from the NBA franchise's president. That chagrined Bucks' staffer sent the phishing crook 2015 tax year data on the team's employees, including his rank-and-file colleagues and highly-paid professional basketball players. Well, that tax scam is back. Email spoofs company CEO: The Internal Revenue Service says the email scam is now making its way across the nation for a second... Read more →


Millions of taxpayers prepare their own returns using tax software. Even the Internal Revenue Service encourages this do-it-yourself approach with Free File. So it's no surprise that many tax professionals are looking at ways to retain and add to their client base. Unfortunately, crooks know this, too, and are taking advantage with a new phishing scam in which they target accounting and tax preparation firms and pose as potential clients. Instead of looking for help in completing their returns, the cybercrooks are trying to gather sensitive information from tax professionals that the criminals then will use to file fraudulent tax... Read more →


Tax season is here. You know what that means. Tax scams are here in full force. Even before the official 2017 filing season started, the Internal Revenue Service warned tax professionals to be on the lookout (sorry, I know that the BOLO phrase is a touchy one when it comes to the IRS) for yet another tax scam. This one, according to the IRS and its Security Summit partners, is a new e-mail phishing scheme aimed at tax pros that has the subject line "Mails on Hold!" It comes just two months after the crooks tried to get tax preparer... Read more →


There weren't any major tax bills in 2016. That's going to change in some form in 2017 now that the Republicans control Congress and the White House. via GIPHY But there still were plenty of tax-related matters that got attention last year. Below is my list of top 10 tax stories of 2016, starting with the one I saw as most important. And as a bonus, I also pulled out my slightly cracked crystal ball -- really, who saw the presidential election turning out like it did? -- to forecast five tax issues that we're likely to see in 2017.... Read more →


Most of us can use some extra cash. That's particularly true during the holiday shopping season. But unfortunately, recent emails I got from two federal financial officials offering unexpected windfalls are fake. Worse, the messages from Jacob Lew and Janet Yellen are identity theft phishing scams. ID theft impersonation scams: I know most of the ol' blog's loyal readers recognize this duo as, respectively, the U.S. Treasury Secretary and the Chair of the Board of Governors of the Federal Reserve System, popularly known as the Fed. As flattered as I might be to learn that Lew and Yellen follow my... Read more →


Most of us are knee-deep (or deeper!) into holiday tasks, but the Internal Revenue Service thinks it's also a great time to think about security measures that can protect our tax data during the upcoming tax filing season. That's right, smack in the middle of seasonal shopping and parties, it's National Tax Security Awareness Week. The IRS and its Security Summit partners from the tax software and preparation industry, the tax professionals' community and the state tax world are offering tips this week on scams to be guard against, as well as ways to prevent crooks from stealing our IDs... Read more →


Attention users of Internal Revenue Service online options. Some of you soon will be getting letters from the IRS about proving who you are. This is not a scam. The coming IRS letters will be real. Some folks will be getting real letters from the IRS asking them to validate the IDs they use to access online tax services. The mailing is not a scam, but it's always good to be careful when you get any request for personal data. New ID validation effort: The IRS notified tax professionals this week via email that during the next five weeks, the... Read more →