One of the only consistent descriptors for taxes and tax law is that they are confusing. Many people go through tax issues because they improperly filled out their taxes or they simply didn’t understand the tax situation with which they were presented. Adding to this confusion are the fierce penalties that someone can suffer if they mess up their taxes. Thus, people are hesitant and unsure when dealing with their tax situation.
We bring all of these factors up in light of a new national tax scam that has netted the scammers at least $4 million. The state of California was hit especially hard, contributing to $1 million of the $4 million lost to the scammers.
So what are the scammers doing to make their money? Something sadly simple: they are calling people and claiming that they are the Internal Revenue Service. They say that you need to give them money to fix your tax debt, otherwise you could be arrested. And that’s it. That has netted the scammers millions of dollars.
It’s really unfortunate, but like we said, the confusing world of taxes can make people act unlike themselves. They get nervous and unsure — and they fear the IRS, thus contributing to their belief that someone on the phone is with the IRS, even when they really aren’t.
Remember that if you are called by someone claiming to be the IRS, verify that they really are with the tax agency. If you are unsure, you could call the IRS directly or bring in an attorney to help protect you when tax issues are presented to you.
Source: NBC Bay Area, “IRS Phone Scam Targeting California,” Stephen Stock, Julie Putnam and Mark Villarreal, July 16, 2014