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Q:  I’m concerned. I was sure I paid my income tax this year when I filed, but I have just received a call from someone saying they are an authorized IRS collection agent and I need to pay a small balance now due ($350). The agent said I should pay by prepaid debit card.  What do you recommend?  

Bailey J., Private Business Owner
Akron, OH

WASHINGTON – The Internal Revenue Service issued a warning that tax-related scams continue across the nation even thou

gh the tax filing season has ended for most taxpayers. People should remain on alert to new and emerging schemes involving the tax system that continue to claim victims. 

“We continue to urge people to watch out for new and evolving schemes this summer,” said IRS Commissioner John Koskinen. “Many of these are variations of a theme, involving fictitious tax bills and demands to pay by purchasing and transferring information involving a gift card or iTunes card. Taxpayers can avoid these and other tricky financial scams by taking a few minutes to review the tell-tale signs of these schemes.”

WASHINGTON – The Internal Revenue Service again warned people to beware of a new scam linked to the Electronic Federal Tax Payment System (EFTPS), where fraudsters call to demand an immediate tax payment through a prepaid debit card. This scam is being reported across the country, so taxpayers should be alert to the details. 

Q: I am fed up and frustrated trying to keep—and remember passwords that are both complex and creative. This is frustrating and I am at my wit's end. What can I do to make it easier for me to remember but more secure against attacks? -Mary Kay C, Business Executive, Brookpark, Ohio


A: Thanks for your question, Mary Kay. Yours is one that almost everyone can relate and you are not alone in your frustration. Fortunately, I may be able to provide some insight and an alternative for you. 

Extracted in part from https://www.irs.gov/uac/newsroom/irs-alerts-taxpayers-with-limited-english-proficiency-of-ongoing-phone-scams-urges-caution-before-paying-unexpected-tax-bills

How private debt collection works

The IRS reminds people to be on the lookout for scam artists trying to dupe taxpayers as the private debt collection program begins.

Starting this month, a new program will transfer some long-standing tax bills over to private firms. The only outside agencies authorized to contact taxpayers about their unpaid tax accounts will be one of four firms authorized under the new private debt collection program. Even then, any affected taxpayer will be notified first by the IRS, not the private collection firm. 

A dangerous email scam currently is circulating nationwide and targeting employers, including tax exempt entities, universities and schools, government and private-sector businesses. The scammer poses as an internal executive requesting employee Forms W-2 and Social Security Number information from company payroll or human resources departments. They may even send an initial “Hi, are you in today” message before the request.

WASHINGTON – With the 2017 tax season underway, the IRS reminds seniors to remain alert to aggressive and threatening phone calls by criminals impersonating IRS agents. The callers claim to be IRS employees, but are not. 

These con artists can sound convincing when they call. They use fake names and bogus IRS identification badge numbers. They may know a lot about their targets, and they usually alter the caller ID to make it look like the IRS is calling.

Tax season is prime time for scammers and cyber criminals. Beyond identity theft, which is seemingly quite commonplace, tax scams have the dubious distinction of rising to the top of the Better Business Bureau's list of scams in 2016.

According to the Better Business Bureau Scam Tracker, the top ten list includes: 

  • Tax scams
  • Debt collections
  • Sweepstakes/prizes/gifts
  • Online purchase
  • Employment

What caught our eye today? This article by Emily Valla, special to the Idaho Statesman.