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Ask Phil: 3 Things the IRS Will Never Do

Today, Optima Tax Relief Lead Tax Attorney, Phil, discusses 3 things the IRS will never do. These items are crucial to avoid growing tax scams. 

The IRS Will Never Threaten You with Law Enforcement 

The IRS does not use scare tactics like threatening taxpayers with arrest, deportation, or police involvement to collect taxes. Legitimate communications from the IRS involve letters sent by mail, and they give taxpayers due process to address any outstanding tax issues. If someone claims to be from the IRS and makes threats of legal action, it’s likely a scam.  

The IRS Will Never Call Randomly to Request Personal Information 

The IRS won’t cold call you asking for sensitive information, such as your Social Security number, bank account details, or passwords. Not only do they already have access to this information, but they will always communicate first through official letters sent via mail. If you receive an unexpected call asking for personal details, it’s a red flag that the caller could be a scammer. 

The IRS Will Never Ask for Payment Through Gift Cards, PayPal, or Cryptocurrency 

The IRS only accepts payments via traditional methods like checks, debit or credit cards, or direct bank transfers. Any request to pay taxes using gift cards, PayPal, or cryptocurrency is a clear indication of a scam. The IRS does not use these payment methods, and you should avoid engaging with anyone who demands them.  

How to Report a Tax Scam 

If you believe you’ve been scammed by someone posing as the IRS, take immediate action. Report the incident to the Treasury Inspector General for Tax Administration (TIGTA) through their website or by phone. You should also report the scam to the Federal Trade Commission (FTC) via their website at reportfraud.ftc.gov. If you provided personal or financial information, consider contacting your bank and credit bureaus to protect your accounts. Additionally, you can report IRS or U.S. Treasury-related communications to phishing@irs.gov for investigation.  

Tune in next Friday when Phil answers your question, Will hiring Optima Tax Relief affect your credit score?” 

If you need tax help, contact us today for a Free Consultation 

Categories: Ask Phil Video Series