Individuals impersonating Internal Revenue Service (IRS) employees are making unsolicited threatening telephone calls to taxpayers. They use the threat of arrest to obtain money from victims by falsely representing that the victims owe back taxes or other fees. The perpetrators demand that the victims send them money via iTunes cards, other prepaid debit cards, money orders, or wire transfers from their banks.
These individuals falsely claim to be IRS employees and tell intended victims they owe taxes and must pay using an iTunes card, other pre-paid debit card, money order, or wire transfer. Some of them are in the United States; however, In the past three to four years, approximately two million people have been victims of IRS-related financial scams. Perpetrators extort the victims by various means, by “Swatting” the victims if they fail to pay, or using local law enforcement phone numbers to legitimize their demands. The amounts per victim vary anywhere from $500.00 to $150,000, paid primarily in Wal-Mart or iTunes gift cards.
Some are located in the United States but there is a strong international component to this crime as well. Since October 2013, TIGTA has received reports of these fraudulent calls in every State in the country with perpetrators calling with multiple caller IDs from around the world. The top five States with the most losses are: (1) California – more than $10 million; (2) New York – more than $4 million; (3) Texas – more than $4 million; (4) Illinois – more than $3 million; and (5) Florida – more than $2 million.1
The LAPD has invested in Public Service Announcements warning the public of the scam, not to pay any money and contact TIGTA (https://www.treasury.gov/ tigta/index.shtml).
WHAT TO DO?
First, hang up! Do not engage with these callers. If you owe Federal taxes, or think you might owe taxes, hang up and call the IRS at 800-829-1040. IRS workers can help you with your payment questions.
If you do not owe taxes, fill out the “IRS Impersonation scam” form on TIGTA’s website (www.tigta.gov) or call TIGTA at (800) 3664484. You can also file a complaint with the Federal Trade Commission (www.FTC.gov). Add “IRS Telephone Scam” to the comments in your complaint.