There are a number of different scams that IRS employees are trained to perpetrate. The scam to get an economic payment from taxpayers is one that most taxpayers have likely experienced. The scammers claim that the taxpayer will be sent hundreds of dollars if they simply send a certain amount of money in one lump sum. This method of payment often works with taxpayers who owe large sums of money to the IRS, or taxpayers who may have tax debt but no money to pay it off.
The way this scheme works is that taxpayers receive an electronic transfer from the government when they file their tax returns for the year in which they wish to apply the special relief. The amounts involved can be substantial, and often taxpayers never see any of the money. The next day, they discover that they do not qualify for the retirement benefits that they were expecting. Some cases involve sending out smaller payments that will never reach the target amount. In other cases, there are no notifications whatsoever given that the money is needed, or that the payments are due.
Some other forms of tax fraud include sending out text messages to taxpayers about upcoming anniversaries, or telling them about personal information scams that will help them steal. In both of these instances, there are often personal details that Americans would not think to ask themselves before. One common scheme is the covid-19 scheme, which targets those who send electronic money transfers instead of paper ones. The scam artist will use a cell phone in an effort to collect the fee that is due. If the recipient finds out that he has sent money to an incorrect address, he may end up paying penalties and possible fines.
The scammers will also target taxpayers by promising to provide some type of personal impact payment if they send money to the government. Taxpayers often think that this type of economic impact payment is a real benefit, but the Internal Revenue Service does not offer this type of benefit. It is actually illegal to offer any kind of personal impact tax payment, and has been reported that individuals have sent personal information like bank account numbers and social security numbers in an effort to benefit from this loophole. This scam has cost the United States Justice Department millions of dollars.
Another way that the scammers will attempt to steal from the system is by asking for a form SSA-1099. This document is required to file a tax return with the IRS, and mistakenly answering “yes” to the form will result in criminal charges. If you receive a form SSA-1099, it is important that you contact the police immediately to report the fraudulent request.
It is imperative that you . . . . . . be very careful when answering any of the questions on the tax forms. There are many ways that the scammers will try to take advantage of your questions or concerns but answering “Yes” to any of the questions on a stimulus payment application will get you out of the qualifying stage and may disqualify you from receiving any further payments from the government. You can avoid being disqualified by checking the box that says “qualifying child,” if you do not have a qualifying child then check the boxes saying “parent.” Be careful that you do not provide any false information about income, employment, or assets because this can help the scammers to defraud the government.