US taxpayers warned against fake IRS claims in phone scam

The Internal Revenue Service last week warned US taxpayers about a growing tax scam in which the targets are told by telephone that they owe money to the IRS and must pay up immediately.

The fraudsters display an IRS phone number on the intended victim's caller ID and demand supposed tax dues.

Particularly targeting recent US immigrants, the scammer typically tells the targets over the phone that they must pay through a pre-loaded debit card or a wire transfer, the IRS said in its notice.

The victim's caller ID displays an IRS toll-free number in a deception known as caller ID spoofing. For added effect, the scammers often add background noise on the call to make it sound like an official call centre. They may also send follow-up emails from a bogus IRS address.

The IRS said there could be hundreds of instances of the scam operating nationwide. "If someone unexpectedly calls claiming to be from the IRS and threatens police arrest, deportation or license revocation if you don't pay immediately, that is a sign that it really isn't the IRS calling," said IRS acting commissioner Danny Werfel in a statement.

"We do not and will not ask for credit card numbers over the phone, nor request a pre-paid debit card or wire transfer."

The IRS said the operation was sophisticated. The scammers are able to provide would-be victims the last four digits of their Social Security numbers and have the ability to spoof the agency's toll-free number on caller ID.

''This scam has hit taxpayers in nearly every state in the country," said Werfel. "We want to educate taxpayers so they can help protect themselves.''

The agency said the scammers also send fake emails to support their claims and use fake names and IRS badge numbers.

They have threatened victims of the scam with jail time or driver's license revocation. Scammers hang up and another person then soon calls back claiming to be from the local police or Department of Motor Vehicles office, to put a further scare into the potential victim.