Fake IRS agents target more than 366,000 in huge US tax scam

[webfact]

Fake IRS agents target more than 366,000 in huge tax scam
By STEPHEN OHLEMACHER

WASHINGTON (AP) — Fake IRS agents have targeted more than 366,000 people with harassing phone calls demanding payments and threatening jail in the largest scam of its kind in the history of the agency, a federal investigator said Thursday.

More than 3,000 people have fallen for the ruse since 2013, said Timothy Camus, a Treasury deputy inspector general for tax administration. They were conned out of a total of $15.5 million.

The scam has claimed victims in almost every state, Camus said. One unidentified victim lost more than $500,000.

"The criminals do not discriminate. They are calling people everywhere, of all income levels and backgrounds," Camus told the Senate Finance Committee at a hearing. "The callers often warned the victims that if they hung up, local police would come to their homes to arrest them."

The scam is so widespread that investigators believe there is more than one group of perpetrators, including some overseas.

Camus said even he received a call from one of the scammers at his home on a Saturday. He said he had a stern message for the caller: "Your day will come."

Sen. Johnny Isakson, R-Ga., said he got a similar call, but realized it wasn't a real IRS agent.

"It was a very convincing, convincing phone call," Isakson said.

So far, two people in Florida have been arrested, Camus said. They were accused of being part of a scam that involved people in call centers in India contacting U.S. taxpayers and pretending to be IRS agents.

"These criminal acts are perpetrated by thieves hiding behind telephone lines and computers, preying on honest taxpayers and robbing the Treasury of tens of billions of dollars every year," said Sen. Orrin Hatch, R-Utah, chairman of the Senate Finance Committee. "Taxpayers must be more aware of the risks and better protected from attack and these criminals must be found and brought to justice."

The IRS and the inspector general's office started warning taxpayers about the scam a year ago, and it has since ballooned. This year, it tops the IRS list of "Dirty Dozen" tax scams.

Tax scams often increase during tax filing season, and with millions of Americans preparing their returns ahead of the April 15 deadline, the IRS is seeing many cases of identity theft and refund fraud.

In recent years the IRS has stepped up efforts to detect large numbers of tax refunds going to the same address or bank account. Using computer filters, the agency identified more than 517,000 suspicious returns and blocked $3.1 billion in fraudulent returns, as of October 2014, Camus said in his testimony.

In 2012, the IRS started working more closely with U.S. attorneys' offices around the country to combat tax refund fraud by people using stole identities, said Caroline Ciraolo, acting assistant attorney general for the Justice Department's tax division. Since then, the tax division has opened nearly 1,000 investigations and brought prosecutions against more than 1,400 people, Ciraolo told the Senate Finance Committee hearing.

"Given the sophistication of this criminal activity and the fact that a lot of it comes from overseas, this looks to me like an emerging type of organized crime," said Sen. Ron Wyden of Oregon, the top Democrat on the Finance Committee.

The inspector general's office started receiving complaints about the telephone scam in 2013. Immigrants were the primary target early on, the IG's office said. But the scam has since become more widespread.

As part of the telephone scam, fake IRS agents call taxpayers, claim they owe taxes, and demand payment using a prepaid debit card or a wire transfer. Those who refuse are threatened with arrest, deportation or loss of a business or driver's license, Camus said.

The callers can manipulate caller ID to make it look like they are calling from an IRS phone number. They might even know the last four digits of the taxpayer's Social Security number, Camus said.

They request prepaid debit cards because they are harder to trace than bank cards. Prepaid debit cards are different from bank cards because they are not connected to a bank account. Instead, consumers buy the cards at stores, and use them just like a bank card, until the money runs out or they add more.

Real IRS agents usually contact people first by mail, Camus said. And they never demand payment by debit card, credit card or wire transfer.

"Our message is simple," Camus said. "If someone calls unexpectedly claiming to be from the IRS with aggressive threats if you do not pay immediately, it is a scam artist calling. The IRS does not initiate contact with taxpayers by telephone. If you do owe money to the IRS, chances are you have already received some form of a notice or correspondence from the IRS in your mailbox."

-- (c) Associated Press 2015-03-13

[remorhaz]

The problem isn't that these criminals are impersonating the IRS, the problem is that they are capable of impersonating the IRS because the IRS behaves and acts exactly like these criminals do i.e. with threats of physical violence and prison. The senator isn't upset that people are being robbed he is upset that the agency in charge of robbing people has competition. If there were not an IRS no one would believe these criminals and the U.S. managed to get along without an IRS for much of its history. Elimination of it would be a net positive for the entire nation and would completely eliminate scams like this.

[ALLSEEINGEYE]

The problem isn't that these criminals are impersonating the IRS, the problem is that they are capable of impersonating the IRS because the IRS behaves and acts exactly like these criminals do i.e. with threats of physical violence and prison. The senator isn't upset that people are being robbed he is upset that the agency in charge of robbing people has competition. If there were not an IRS no one would believe these criminals and the U.S. managed to get along without an IRS for much of its history. Elimination of it would be a net positive for the entire nation and would completely eliminate scams like this.

Then how would the US finance it's massive military? Sell Drugs? Oh they can't do that anymore either

[Seastallion]

The problem isn't that these criminals are impersonating the IRS, the problem is that they are capable of impersonating the IRS because the IRS behaves and acts exactly like these criminals do i.e. with threats of physical violence and prison. The senator isn't upset that people are being robbed he is upset that the agency in charge of robbing people has competition. If there were not an IRS no one would believe these criminals and the U.S. managed to get along without an IRS for much of its history. Elimination of it would be a net positive for the entire nation and would completely eliminate scams like this.

That's like saying we should get rid of hospitals so nobody will ever die from medical mishap or doctor negligence.

You do have a point that the government is more worried about someone impersonating their agents than the citizens that have lost money.

[F430murci]

The problem isn't that these criminals are impersonating the IRS, the problem is that they are capable of impersonating the IRS because the IRS behaves and acts exactly like these criminals do i.e. with threats of physical violence and prison. The senator isn't upset that people are being robbed he is upset that the agency in charge of robbing people has competition. If there were not an IRS no one would believe these criminals and the U.S. managed to get along without an IRS for much of its history. Elimination of it would be a net positive for the entire nation and would completely eliminate scams like this.

Stoned or stupid. IRS neither threats violence or prison.

I gave been called numerous times by these Dumb arrsssee scammers saying they were with IRS legal department. Dudes had such a thick Indian accent I could not understand them.

IRS never calls you, unless they are returning your call. They just send notices in the mail.

[DaddyWarbucks]

The problem isn't that these criminals are impersonating the IRS, the problem is that they are capable of impersonating the IRS because the IRS behaves and acts exactly like these criminals do i.e. with threats of physical violence and prison. The senator isn't upset that people are being robbed he is upset that the agency in charge of robbing people has competition. If there were not an IRS no one would believe these criminals and the U.S. managed to get along without an IRS for much of its history. Elimination of it would be a net positive for the entire nation and would completely eliminate scams like this.

Exactly.

Legalized criminality is getting some competition from the old fashioned kind.

[zaphod reborn]

And no American should accept any IRS inquiry or correspondence as being authentic. The entire agency has been discredited and lost its authority. How is a regular citizen to know if they are actually dealing with an IRS official acting within their legal capacity? They act like thugs, and should all be treated as criminals. Let the tax courts settle tax matters, not criminals.

[Srikcir]

The problem is simple lack of education of the public by the government on how the IRS conducts taxpayer contacts. This is compounded by a constant barrage of misinformation and misrepresentation of government taxation processes by government officials themselves such as Republican congressmen, and by anti-tax protest movements.

Investigations of the most vocal tax protesters have found they are actually in full compliance with tax laws. They scam their own followers. If any of the victims had insisted on their legal rights, they would have uncovered the scam. Successful protection of citizens in any society from abuse and scams cannot come from the government alone. Citizens must educate themselves as to their rights and question persons insisting on money payments with no prior history of government contacts.

[BKResort]

The problem isn't that these criminals are impersonating the IRS, the problem is that they are capable of impersonating the IRS because the IRS behaves and acts exactly like these criminals do i.e. with threats of physical violence and prison. The senator isn't upset that people are being robbed he is upset that the agency in charge of robbing people has competition. If there were not an IRS no one would believe these criminals and the U.S. managed to get along without an IRS for much of its history. Elimination of it would be a net positive for the entire nation and would completely eliminate scams like this.

Stoned or stupid. IRS neither threats violence or prison.

I gave been called numerous times by these Dumb arrsssee scammers saying they were with IRS legal department. Dudes had such a thick Indian accent I could not understand them.

IRS never calls you, unless they are returning your call. They just send notices in the mail.

You are right...but those spammers always try to reach most vulnerable people, like Hispanics. Calling 100 a day..always get some...but also..they send letters with false Government agency name on top. Remember..the US is the land of the "free market".

[Daniel Ingalls]

Just ask for a phone number and tell them you will call back. After they give you an office number. hang up and call the IRS and see if they have such a number. If no number exist, when they do call back again, tell them where they can stick it!

[HerbalEd]

The problem isn't that these criminals are impersonating the IRS, the problem is that they are capable of impersonating the IRS because the IRS behaves and acts exactly like these criminals do i.e. with threats of physical violence and prison. The senator isn't upset that people are being robbed he is upset that the agency in charge of robbing people has competition. If there were not an IRS no one would believe these criminals and the U.S. managed to get along without an IRS for much of its history. Elimination of it would be a net positive for the entire nation and would completely eliminate scams like this.

I'm well aware of how threatening the IRS can be, but you highly exaggerate when you say they threaten with physical violence .... and when someone exaggerates or down-right lies like this they loose all credibility.

[remaxtony]

None of the IRS details matter, this scam only works on people that are naive, as in all cons.

Most people know that if you get emails of winning the lottery and having to pay the tax upfront to collect, is a scam that has been going on forever. But, still, there are idiots falling for it because they don't know and are naive. There are dozens of variations of this scam........you win or get something good, but must pay some small fee upfront. Its a con, but suckers are born every minute and are naive and fall for it.

Anyone stupid enough to think the IRS would accept payments via debit cards or wire transfers are just plain naive and stupid. And those are always who fall victim to cons.

[DaddyWarbucks]

One point that hasn't been mentioned is the probability that many - if not most - of these people had been cheating on their taxes.

The old saying "A guilty conscience needs no accuser" might apply here.

Non-compliance is widespread in the US. Who among us would cast the first stone?

[Steely Dan]

It reminds me of the IRS scam to block charitable status to organizations the current government disagreed with politically. Hang on... That was an official scam not an unofficial one.

[cup-O-coffee]

None of the IRS details matter, this scam only works on people that are naive, as in all cons.

Most people know that if you get emails of winning the lottery and having to pay the tax upfront to collect, is a scam that has been going on forever. But, still, there are idiots falling for it because they don't know and are naive. There are dozens of variations of this scam........you win or get something good, but must pay some small fee upfront. Its a con, but suckers are born every minute and are naive and fall for it.

Anyone stupid enough to think the IRS would accept payments via debit cards or wire transfers are just plain naive and stupid. And those are always who fall victim to cons.

Ahemmm! Excuse me, but...

hxxp://xxx.irs.gov/uac/Pay-Taxes-by-Credit-or-Debit-Card

Edited March 13, 2015 by cup-O-coffee

[ggt]

The IRS does not initiate contact with taxpayers by telephone.

Not only that but...it is next to impossible to get an IRS agent on the phone...tried for almost a year before having to travel for 2 hours to my closest IRS office...where upon the agent there told me she could not talk to the IRS directly either...but turned my case over to some 3rd party mediator in a large city many miles away...so this mediator was allowed to send emails to the IRS requesting action...

Talk about layers of insulation...the IRS is the most secretive and politically motivated agency in the US...

[VillageIdiot]

The IRS does not initiate contact with taxpayers by telephone.

Not only that but...it is next to impossible to get an IRS agent on the phone...tried for almost a year before having to travel for 2 hours to my closest IRS office...where upon the agent there told me she could not talk to the IRS directly either...but turned my case over to some 3rd party mediator in a large city many miles away...so this mediator was allowed to send emails to the IRS requesting action...

Talk about layers of insulation...the IRS is the most secretive and politically motivated agency in the US...

Secretive and Orwellian in nature... that's what it it is.

[Chicog]

It reminds me of the IRS scam to block charitable status to organizations the current government disagreed with politically. Hang on... That was an official scam not an unofficial one.

But surely you mean "scandal".

[Chicog]

The IRS does not initiate contact with taxpayers by telephone.

Not only that but...it is next to impossible to get an IRS agent on the phone...tried for almost a year before having to travel for 2 hours to my closest IRS office...where upon the agent there told me she could not talk to the IRS directly either...but turned my case over to some 3rd party mediator in a large city many miles away...so this mediator was allowed to send emails to the IRS requesting action...

Talk about layers of insulation...the IRS is the most secretive and politically motivated agency in the US...

With the amount of disgruntled lunatics running around with guns, it seems perfectly reasonable to me to isolate people from them.

[timendres]

The problem isn't that these criminals are impersonating the IRS, the problem is that they are capable of impersonating the IRS because the IRS behaves and acts exactly like these criminals do i.e. with threats of physical violence and prison. The senator isn't upset that people are being robbed he is upset that the agency in charge of robbing people has competition. If there were not an IRS no one would believe these criminals and the U.S. managed to get along without an IRS for much of its history. Elimination of it would be a net positive for the entire nation and would completely eliminate scams like this.

That's like saying we should get rid of hospitals so nobody will ever die from medical mishap or doctor negligence.

You do have a point that the government is more worried about someone impersonating their agents than the citizens that have lost money.

The original constitution outlawed income tax, for many very good reasons. We should outlaw it again. VAT (or some form of sales tax) is a perfectly reasonable substitute. It eliminates the invasion of privacy of the average citizen that the income tax requires. It leaves tax reporting and auditing with businesses, who are already equipped to handle it. It eliminates billions of wasted dollars spent by citizens to file their tax returns. It encourages saving and investment and discourages consumption. It naturally checks the government from over taxing, as excessive taxation will choke the industry and reduce revenues. And, it eliminates the ability of the government to play games with voters by extending tax breaks to favored voting blocs.

Sadly, the legal and accounting industry, not to mention the enormous IRS agency, will fight this change to the death.

[metisdead]

A conspiracy nonsense post has been removed as well as the replies. An inflammatory post has been removed as well.

[F430murci]

The IRS does not initiate contact with taxpayers by telephone.

Not only that but...it is next to impossible to get an IRS agent on the phone...tried for almost a year before having to travel for 2 hours to my closest IRS office...where upon the agent there told me she could not talk to the IRS directly either...but turned my case over to some 3rd party mediator in a large city many miles away...so this mediator was allowed to send emails to the IRS requesting action...

Talk about layers of insulation...the IRS is the most secretive and politically motivated agency in the US...

Not too difficult. I have had to deal with the IRS for myself and for clients. If you call the main number during peak tax time, it may take 20 or 30 minutes to get someone.

There, however, are other number to call and it us much easier to get someone in the phone in the collections department.

I have always found the IRS easy to work with provided you are not dishonest or completely ignore their notices until they finally take some action. The IRS is much more approachable and easier to strike deals with than state taxing authorities.

RE: the scam

This scam is pretty easy to figure out. U have been called at least 5 times. They always have a thick accent and say they are a paralegal from the IRS legal department. They then proceed to threaten to send cops out to arrest you and to tell your employer and usually use foul language.

[ggt]

The IRS does not initiate contact with taxpayers by telephone.

Not only that but...it is next to impossible to get an IRS agent on the phone...tried for almost a year before having to travel for 2 hours to my closest IRS office...where upon the agent there told me she could not talk to the IRS directly either...but turned my case over to some 3rd party mediator in a large city many miles away...so this mediator was allowed to send emails to the IRS requesting action...

Talk about layers of insulation...the IRS is the most secretive and politically motivated agency in the US...

With the amount of disgruntled lunatics running around with guns, it seems perfectly reasonable to me to isolate people from them.

Especially if you are running a government sponsored extortion racket...