Fake Tax Notices and Other Scams: Part II

There’s an ongoing scam out there involving fake call centers claiming to be the US tax authorities and demanding bogus unpaid taxes. How can you avoid falling victim to this scam?

Welcome to the second part of my two-part series dealing with fake tax notices and other scams you need to watch out for. First, I’m happy to report some good news about fake IRS collection scams.

Last week, authorities in India arrested about 70 people and are questioning hundreds more after uncovering a massive scam to cheat thousands of Americans out of millions of dollars by posing as US tax authorities and demanding unpaid taxes.

According to police in Mumbai, the year-long scam involved fake call centers which sent voicemail messages threatening US citizens with collection action because they supposedly owed back taxes. Those who called back believed the threats and would fork over thousands of dollars to “settle” the debt. The payment methods demanded were made by cashier’s checks, gift cards, and vouchers.

These scammers collected up to $150,000 per day and the estimated total collected is about $30 million. It is believed that up to 600 people in India were involved and they had a US-based partner providing names and telephone numbers of vulnerable US citizens. The IRS has received up to 900,000 complaints about similar scam calls since October 2013. More than 5,000 people have fallen for this scam, paying out