Posted by Fred Lake

Beware of IRS Fake Letters

Beware of IRS Fake Letters

Each year, the vast majority of taxpayers file their returns with the IRS between the end of January and the April due date and other filing dates.

However, the Internal Revenue Service (IRS) doesn't just take taxpayers at their word for the return information. For this reason, tax season is followed by "matching season," when the IRS tries to compare information from each taxpayer's tax return with information from various tax returns from other entities (employers, companies, financial institutions, educational institutions, insurance market insurance, etc.). The aim is to identify accidental omissions and possible intentional omissions.

When the IRS detects a discrepancy, it sends the taxpayer one of many standard letters detailing the discrepancy and outlining options to resolve the problem. Receiving such a letter inevitably makes a person's heart beat a little faster because everyone is afraid of receiving letters from the IRS.

Many taxpayers receive letters and emails from the IRS. However, is the letter real? Thieves know it's the time of year for the IRS to email taxpayers, so they send out bogus letters to trick people into paying bogus taxes. Therefore, taxpayers must be very careful to avoid being misled by these scammers. It is recommended that a tax professional review all letters you receive before taking any action. If the letter is real, it needs a quick response, but if it is bogus, it should be ignored.

These criminals take advantage of the anxiety that accompanies receiving a letter from the IRS; it is based on the likelihood that the concerned individual will hurry to eliminate the potential problem. For example, most of these fake letters require immediate payment and threaten to arrest you if payment is not made. However, this type of language should set off the fraud alarm; The IRS never demands immediate payment or threatens jail time. In addition, these crooks often ask people to make payments by giving them the serial numbers of the prepaid stored-value card. This allows them to quickly access the money and then disappear. Such a request should also alert you to attempted fraud, as the IRS never collects payments in this manner.

We encourage you to educate your family members, especially the elderly, about these fake letters so that they do not fall into these cheap tricks.

Of course, it goes without saying that if you receive a real letter from the IRS, you should not postpone it. A quick response is needed to prevent the IRS from making matters worse. 

We strongly recommend that you contact a tax professional such as FRED LAKE if you receive any correspondence from the IRS so that they can verify its validity and, if necessary, respond quickly and correctly. Also, beware of calls, messages, and emails that claim to be from the IRS; it should also trigger a fraud alert, as the IRS's first contact on a particular issue is always by US mail. These cunning criminals are trying to separate you from your money, but you can prevent that. Don't be fooled.



Fred Lake
Contact Member