It’s summer, but just because tax season is over, scammers have not taken the summer off. The IRS is warning taxpayers of a new scam linked to the Electronic Federal Tax Payment System. The IRS reports the scam is being seen nationwide. In this scam, a con artist, claiming to be from the Service, says that certified letters were sent but were returned as undeliverable.
The scammer threatens arrest if a payment is not made through a prepaid debit card. The con artist also tells the victim that the card is linked to the EFTPS system when, in fact, it is controlled by the scammer. The EFTPS is a freely available automated system offered by the U.S. Treasury and does not require the purchase of a prepaid debit card. In addition, taxpayers have several options for paying a real tax bill and are not required to use a specific one.
This is a new twist to an old scam People should stay vigilant against IRS impersonation scams. In addition to the EFTPS scam, there is another problem. The private debt collection problem which is authorized by the IRS is starting to feel like a scam.
In December 2015, Congress passed highway repair legislation that included a provision ordering the IRS to hire private debt collectors for some of its uncollected tax receivables. The IRS had previously tried using private debt collection agencies twice before, only to discontinue the programs after finding the debt collectors failed to pull in the amount of revenue anticipated and prompted complaints of taxpayer harassment. But the Obama administration decided to give the private debt collection program another try.
The private debt collection program was deferred until the spring of 2017 to be implemented and is only a few weeks old. Already there is proof that one of the companies hired by the IRS is breaking the rules and treating taxpayers improperly. Four Senate Democrats (note it was the Democrats that pass this law) have written a letter to one of the companies hired by the Internal Revenue Service to collect tax debts after complaints that some of its employees encouraged taxpayers to use money from their 401(k) retirement funds , take out a second mortgage to pay off their tax debts, and other wise pressuring taxpayers into making risky financial transactions. This is in violating the Fair Debt Collection Practices Act and provisions of the tax code. The Senators also said they are concerned that the debt collectors may be failing to adequately protect taxpayers from criminals posing as IRS agents.
No matter what the Government does, it is going to be hard for taxpayers to distinguish between a scammer and a caller for an IRS authorized collection agent. Taxpayers should remember that the first contact they receive from IRS or a debt collector on the IRS’s behalf will not be through a random, threatening phone call. Because scammers will not provide taxpayers with reasonable time lines, this is also one way taxpayers can distinguish between scammers and IRS contractors.
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Author’s email: wolff2000@earthlink.net
