We all have been a scammer’s target at some point. Sometimes we outsmart them, and sometimes we get swindled. Scams fray our confidence in technology, financial systems, and institutions. One of the worst scams is when an identity thief claims to be the IRS. Today we will discuss a few tips to outsmart someone claiming to be the IRS.
How to know if it truly is the IRS that is contacting you
The IRS is aware of identity thieves who may try to contact taxpayers through fraudulent calls, emails, texts, and social media messages pretending to be the IRS. They recommend that taxpayers be aware of how the IRS usually contacts them.
Email, text, and social media
The IRS first contact is usually by mail. The IRS never sends unexpected or unsolicited texts. The IRS does not begin contact with taxpayers via email, texts, or social media. The IRS will never request personal or financial information via messages.
Phone calls
After mailing a written notice or letter, an IRS agent may call to confirm an appointment or discuss items for a scheduled audit. The IRS never leaves pre-recorded, urgent, or threatening messages.
Letters and notices
If a taxpayer receives a suspicious letter or notice, they should check to see if it’s truly from the IRS. Taxpayers should log into their online accounts to confirm or contact the IRS customer service for verification.
The most common tax scams
Spelling errors, incorrect grammar, links or attachments with unusual URLs, or threats to pay immediately are dead giveaways of tax scams. Taxpayers should be aware of the most common tax scams:
- Charity impersonators
- COVID-19 pandemic schemes
- Credits and refunds misinformation
- Disaster fraud
- Dishonest tax preparers
- Email and text message impersonators
- Seniors targeted
- Social media, bad tax advice, and scams
- Tax debt settlement or relief services
- Unemployment claims and identity theft
- Unexpected tax bill
- W-2 Form fraud
- Unclaimed tax refund
The unclaimed tax refund scam is the one most of us tend to fall victim to. In some cases, the government is withholding unclaimed funds from you. If you are uncertain whether you are being swindled, there are ways to search for unclaimed money via the proper institutions or databases.
Searching for unclaimed money from the government
You may be able to file for unclaimed money owed to you, or that was owed to a deceased relative, if you are their legal heir. The following steps can be followed to search for unclaimed money:
- Search by state
- State governments hold most unclaimed money in sources such as bank accounts, insurance policies, or state agencies. You can search your state or other states’ unclaimed property offices.
- Search other databases
- You can use separate databases to search for each type of unclaimed money.
According to the IRS official website, the following databases are recommended:
- Department of Labor’s database for unclaimed wages
- Pension Benefit Guaranty Corporation (PBGC) search tool for unclaimed pensions
- U.S. Department of Veterans Affairs (VA) database for unclaimed veteran insurance funds
- HUD database for unclaimed Federal Housing Administration insurance refunds
- Where’s My Refund? search tool for unclaimed tax refunds
- Securities and Exchange Commission (SEC) database for unclaimed SEC enforcement funds
- FDIC database for unclaimed money from closed financial institutions
- TreasuryHunt.gov for unclaimed matured savings bonds that have stopped earning interest
- U.S. Courts Unclaimed Funds Locator for unclaimed money owed after a person or business declared bankruptcy
- Whereabouts Unknown search tool for unclaimed money for Individual Indian Money (IIM) accounts
Identity thieves have swindled people for centuries, but it is even worse in the 21st century. Remember, always rather be safe than sorry! If you fall victim and your Social Security number (SSN) or individual tax identification number (ITIN) was stolen, immediately report it to IdentityTheft.gov.
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