A New Twist on an Old Scam

As many are aware, tax scams are on the uptick. What you may not know is there is a new twist on an old scam. The IRS issued an alert to taxpayers to raise awareness of a new telephone scam.

The new twist involves scammers calling taxpayers claiming that two certified letters were returned undeliverable and an immediate payment must be made through a prepaid debt card linked to the Electronic Federal Tax Payment System (EFTPS).

Because the IRS mostly contacts taxpayers by mail, the fraudsters are approaching the scam with the intent to trick taxpayers into believing a letter was, in fact, sent. They even threaten arrest if a payment is not made over the phone.

Taxpayers should be aware that the IRS will not engage in a threatening phone call and not require immediate payment via a prepaid debit card. Tax payments should only be made out to the US Treasury and never any other third parties.

The EFTPS is the portal in which federal taxes can be paid. It’s free and does not require buying a prepaid debit card. It is an automated system for electronic payment via the Internet or by phone using the EFTPS Voice Response System.

While the scammers say not to contact your tax advisor, an attorney or local IRS office, this should raise a red flag. If you do not owe any taxes, we encourage you to hang up immediately. If you do owe taxes, we encourage you to call your advisor.

If you have any questions, please don’t hesitate to call a BPW advisor at (805) 963-7811.