Fake IRS Letter   |   Tax Notice Letter  

Type the word “scams” into the IRS search box and dozens of options come up.  Even though the IRS works very hard to ensure Americans are not being scammed, it’s only a matter of time before a new scam is invented to scare us into paying our tax bill. If you have been a victim of one of these scams, or are afraid you could be, we’ll talk you through what to watch out for and how to report these scammers in hopes they’ll be caught.

IRS Mail Scams

It is unbelievable how many scams are out there in an attempt to scare people into giving their money to who they believe is the IRS.  Unfortunately, one of the ways is by mail.

Many Americans see an IRS letter and they begin to panic. They believe a letter from the IRS is never good news, so they start to lose sight of all logic and common sense.  Unfortunately, scammers know this and have figured out ways to trick us into thinking a letter demanding payment immediately or the Sheriff will show up with a warrant is real and could totally happen.

It’s important to know how and why the IRS contacts you regarding your tax account.  In most cases, the IRS will contact taxpayers through regular mail delivered by the United States Postal Service. It will arrive in a government envelope and have the IRS seal on the letter and also the notice.

How to Know Your IRS Letter is Real

An IRS letter will include the following on every notice, in the same order:

• Top Left of the Letter or Notice
  • IRS address, which will not be from Washington D.C., but rather a service center in Philadelphia, Ogden, Fresno, Kansas City or Austin
  • Below that will be the taxpayers name and current address that is on file where this letter was mailed.
• To Right of the Letter or Notice
  • Notice Number
  • Notice Date
  • Taxpayer ID Number
  • Case Reference Number
  • Number to Contact the IRS
  • Page 1 of X
• The Letter or Notice will Inform you why you are being contacted and a short statement about that reason.
• It will tell you what you need to do and who to call in what amount of time.
• It will tell you the next steps and who to call if the issue cannot be resolved.
• On the second page it will show you the billing details, such as tax period, form number, amount owed, additional interest, additional penalty and the total as of the date of the letter or notice.

Content

The content of the letter or notice will have a myriad of reasons, but rest assured it is not because you won something or that the IRS is giving away money because your return was done perfectly!  Typically, the IRS send letters or notices to taxpayers for the following reasons:

• You have a balance due
• Your refund amount has changed due to X
• Your account has been assigned to enforcement action
• They need additional information to process your return
• More time is needed to review correspondence sent
• Your refund has been applied to X tax year as there was a previous balance due owed

The IRS is in the business of collecting tax, not giving money away.  When you are due a refund, it’s because your tax owed is less than what YOU have paid into the system.  It’s not because the IRS review of your tax return was so impressed, they would like to give you $1,000.  Even if they did, you would taxed on that $1,000.

If you receive a letter asking you to mail in your bank account information or credit card number, that is the not the IRS asking for your information.  The IRS would ask you to visit their website and make a payment there, www.irs.gov/payments  No, there isn’t a .com, .net or any other website, only .gov!

If you receive a letter asking that you mail in gift card instead of a tax payment, this is not the IRS asking you to do so.  This is a scammer who will take your gift card and not lose a wink of sleep. 

Lastly, if you receive a letter or notice and you are not sure if it’s the IRS contacting you, it’s best to call and speak with the IRS personally.  They can be reached 1-800-829-1040 for Individuals or 1-800-829-4933 for Businesses.

Know Who to Report These Scams

• Contact the Treasury Inspector General for Tax Administration to report a phone scam. Use their “IRS Impersonation Scam Reporting” web page. You can also call 800-366-4484.
• Report phone scams to the Federal Trade Commission. Use the “FTC Complaint Assistant” on FTC.gov. Please add “IRS Telephone Scam” in the notes.
• Report an unsolicited email claiming to be from the IRS, or an IRS-related component like the Electronic Federal Tax Payment System, to the IRS at phishing@irs.gov.