- Days left

How IRS Phonies Target Tax Filers After April 15 Deadline

×
Studio shot of tax form, close-up
Getty Images
By Jennifer Schlesinger

The deadline for filing your taxes was April 15, but tax scammers have no deadline.

In a quest for personal information and money even after filing deadlines, scammers often impersonate the Internal Revenue Service.

"The IRS encourages taxpayers to be vigilant year round against phone and email scams that use the IRS as a lure," the IRS said in a statement emailed to CNBC.com. "These scams won't likely end with the filing season so the IRS urges everyone to remain on guard," the IRS said in the email.

Can You Trust Caller ID?

Since October, the IRS has been warning Americans about a sophisticated phone scam that remains pervasive and frequently targets immigrants. The scam has cost the victims more than $1 million, and there have been roughly 20,000 reports of the scam, according to a Treasury Inspector General for Tax Administration press release.

The scam begins with a phone call claiming to be from the IRS. Usually the scammer will say either the call recipient is entitled to a big refund, or they owe money that must be paid immediately. If the recipient refuses to pay, the scamming caller often becomes hostile and threatens jail time or a revocation of the individual's drivers' license.

The phone scam is so sophisticated that the scammers are able to outsmart caller ID technology so that the IRS's number appears. Adding to the appearance of legitimacy, the scammers will offer fake IRS badge numbers and often know the last four digits of the victim's Social Security number.

When receiving one of these calls, "people have to step back and take a deep breath," said Laura Iwan, senior vice president of programs for the Center for Internet Security, a nonprofit that focuses on cybersecurity. She suggests targeted individuals immediately contact the IRS to see if the original call was legitimate.

Other signs the call may be from a scammer include the caller asking for payment using a pre-paid debit card or wire transfer, or asking for a credit card number. The IRS will not ask for this type of payment, nor will they ask for your credit card number over the phone.

Additionally, the IRS's primary correspondence method is through the U.S. Postal Service.

Watch Out for Phishing Emails

While the phone scams are a new threat, phishing emails continue to be a pervasive scam tactic. These phishing emails sometimes contain links to websites that are infected with malware, and purport to be from the IRS and try to convince you to volunteer your personal information.

"We definitely see more phishing, often with a malware component [after April 15]. The messages may pretend to be from the IRS, or one of the popular companies people tend to use for e-filing their taxes," said Roel Schouwenberg, principal security researcher at Kaspersky Lab in an email to CNBC.com.

Like the scam phone calls, these phishing emails will either promise the taxpayer a refund or claim the taxpayer owes money and usually threatens dire consequences if not paid, said Iwan of the Center for Internet Security.

The IRS will not initiate contact with taxpayers by email or any other form of electronic communication. If you receive an email claiming to be from the IRS, you should avoid clicking on any links or opening any attachment. You should also report the email to the IRS by forwarding it to phishing@irs.gov.

Be Careful Where You Store Your Taxes

More than 90 percent of Americans now electronically file their taxes, according to the IRS. While computers have expedited tax return preparation, security experts warn they are a risky place to store your personal tax data.

"Tax returns are a treasure trove. They contain everything someone needs to steal yours and your spouse's identity. They can be easily stolen," Schouwenberg said.

Iwan suggests once you file, store your taxes on an external hard drive or flash drive. You should also make sure you have up-to-date anti-virus, anti-malware, and firewall software.

If you believe you are the victim of identity theft, contact the IRS Identity Protection Specialized Unit at 800-908-4490, extension 245.

For more CNBC coverage of cybersecurity, visit HackingAmerica.cnbc.com.


More from CNBC


Increase your money and finance knowledge from home

Intro to Retirement

Get started early planning for your long term future.

View Course »

How to Avoid Financial Scams

Avoid getting duped by financial scams.

View Course »

TurboTax Articles

Video: Who Qualifies for an Affordable Care Act Exemption (Obamacare)?

The Affordable Care Act requires all Americans to have health insurance or pay a tax penalty. But, who qualifies for an Affordable Care Act exemption? Find out more about who qualifies for an exemption from the Affordable Care Act tax penalty, how to claim an exemption on your tax return and how the Affordable Care Act may affect your taxes with this video from TurboTax.

Video: How to Claim the Affordable Care Act Premium Tax Credit (Obamacare)

The Affordable Care Act Premium Tax Credit is a new refundable tax credit that can lower your monthly health insurance premiums. If you qualify for the tax credit, you can claim the Premium Tax Credit throughout the year to lower your monthly health insurance premiums, or claim the credit with your tax return to either lower your overall tax bill or increase your tax refund.

Deducting Summer Camps and Daycare with the Child and Dependent Care Credit

If you paid a daycare center, babysitter, summer camp, or other care provider to care for a qualifying child under age 13 or a disabled dependent of any age, you may qualify for a tax credit of up to up to 35 percent of qualifying expenses of $3,000 for one child or dependent, or up to $6,000 for two or more children or dependents.

What Is Schedule H: Household Employment Taxes

If you hire people to do work around your house on a regular basis, they might be considered household employees. Being an employer comes with some responsibilities for paying and reporting employment taxes, which includes filing a Schedule H with your federal tax return. But even if you have household employees, filing Schedule H is required only if the total wages you pay them is more than certain threshold amounts specified by federal tax law.

Add a Comment

*0 / 3000 Character Maximum

1 Comment

Filter by:
kg6xf

A few years ago, the wife and I were victims of ID fraud. I have a folder an inch thick of all records. I would say one thing about the "worker bees" at the IRS, the were very polite , thorough, albeit pitifully slow. My case was resolved. All done by letter and phone calls from me.....

April 18 2014 at 6:36 PM Report abuse rate up rate down Reply