The airwaves and print media are being flooded with advertising about settling your tax debts with the IRS for pennies on the dollar. While the ads are giving truthful information, another problem faces thousands of taxpayers every day. Tax scams are prevalent, and for the innocent taxpayer can be very costly. The IRS said the following in a recent news release: “Thousands of people have lost millions of dollars and their personal information to tax scams. Scammers use the regular mail, telephone, or email to set up individuals, businesses, payroll and tax professionals.” The IRS each year puts together a list of the most dangerous scams and calls the list the “Dirty Dozen.” Some that may catch the reader or a client are discussed here.

You answer the telephone and either a recording or a live person tells you that the person on the line is an IRS Agent calling about your tax debt. If you do not pay the debt by credit card immediately, the “agent” will be required to issue an arrest warrant for you. The first clue that this is a scam is that the IRS does not contact taxpayers by telephone. Once you are dealing with a legitimate agent you may have phone calls with the IRS. Post office mail is the way of contact. Agents do visit homes and places of business. You should carefully inspect a visiting agent’s IRS ID. There are fraudulent scams through visits. If suspicious, ask for the agent’s business card and supervisor’s name and phone number. Do not be embarrassed to use due diligence. Call the supervisor at the number given to confirm the legitimacy of the agent. Be aware if two agents show up. They are likely criminal investigator agents investigating a crime. General advice is do not talk to them or give them any documents. Tell them you will have your lawyer contact them. Remember the saying: “Anything you say can be used against you.”