In a particularly cheeky move, scam artists have started posing in on form or another as the IRS in an effort to get you to turn over social security numbers and such. Logically, this actually makes sense. Everyone is terrified by the IRS and dread be contacted by the Agency. Most of us would do anything to resolve any issue raised by an IRS Agent including sending them copies of credit card statements and providing crucial financial information over the phone. Put another way, this is the perfect scenario for a scam artists.
The goal of scam artists, of course, is to get private information they can use to open credit card accounts and so on. This is loosely known as phishing for the purpose of identity theft.
Phishing and identify theft can occur through practically any communication method. Here are some recent scams that were successful:
1. One group of scam artists started sending spam emails notifying taxpayers they were eligible for tax refunds. The scam worked because the emails were sent from IRS types of email accounts including the irs letters in the address. Taxpayers were then told to go to click through to a site where they could fill out a form and get their refund. Of course, the email address and web site were fakes. Nobody got a refund, but the scam artists received a bevy of social security numbers, credit card information and so on. In total, this scam occurred through 12 different web sites in 11 countries.
2. This one is a classic. Scam artists send bogus IRS letters and Form W-8BEN asking non-residents to provide personal information including bank account numbers, PINs, passport numbers and so on. Form W-8BEN is used by banks, not the IRS, to obtain information from non-residents who are opening bank accounts! Unfortunately, many non-residents fell for this scam and had their identities stolen.
There are a couple of guidelines you can use when dealing with IRS communications. First, the IRS never, ever sends email to taxpayers. NEVER! If you get an email communication, it is absolutely a scam. Delete it or send it to the IRS so they can take action.
If you receive mail communications from the IRS, call the agency to verify a letter was really sent to you. With phone call communications, get the persons name and call them back at the IRS. Both methods will stop scam artists in their tracks. Be skeptical of communications you receive from sources you are not expecting.
Finally, the IRS never asks a taxpayer for passwords or PIN numbers. If the agency desires to seize your bank account, they can just do it. They don't need to take out $300 a day until your tax debt is collected!
Scam artists are highly creative people. If you have doubts about an communication of the IRS, pick up the phone and call the agency.
When Does Tax Season Start
As 120 million households prepare their taxes this year, Bill Mitchell, Seven-Day Detective and author of The More You Know – Getting the evidence and support you need to investigate a troubled relationship, asks the $64,000 question. “With the tax season deadline approaching, what election will you use to file your 2005 tax return? Married filing jointly or married with money grubbing cheating Spouse?”
With the tax filing date quickly approaching, you must prepare your taxes again, and on time. This time of year, finances are always a priority for us, “but did the thought ever occur to you that cheating spouses are spending money without telling you?” asks Mitchell.
“Once a cheat always a cheat” as the old goes. “If they will cheat on you, count on it - Uncle Sam is next,” adds Mitchell. “And this means possible IRS problems,” Mitchell warns. The problem for most victims of infidelity is denial. Coping with powerful feelings of trust and mistrust keep many in the dark.
Cheating spouses account for millions of dollars each year in travel, gifts, phone charges, and more as they philander. “Taking an assessment of your income and expenses columns, especially in the ‘miscellaneous category' will unearth cheating spouses' wrongdoings,” offers Mitchell.
Tax season can also serve as time for damage control. Start by investigating credit card and bank statements and phone bills - especially cell accounts. Next, turn your attention toward any disappearing acts or business trips during the past year. Make certain you don't overlook holidays such as Valentine's Day and Christmas and your spouse's birthday. These events are just a few important dates to include as you audit your finances.
Each case depends upon the nature of the income, methods of payment, how and where assets are hidden. For example, does the potential exist for your spouse hide assets through the assistance of a family member, business partner or out-of-state relative? (These circumstances are typical schemes used by others who agree to such a scheme). If your answer to any of these questions is yes, you might consider using spyware and a device called the Phone Accountant to track call data and trace email transactions. In some cases, we have computers forensically analyzed for erased data on the hard drive.
“Another safeguard for anyone suspecting an affair is to check your credit report,” says Mitchell. Obtaining your credit report may provide information and evidence such as hidden credit history, accounts, or debts. This approach can be used to identify transactions your spouse made without you. Look for banking and routing information revealing any trails to hidden assets or financial surprises.
Use this tax season to secure your financial future, avoid debts, and verify the facts. A troubled relationship brings more than pain. It normally brings debt! You shouldn't be the last one to know if your spouse is cheating on the government and you.
Both Richard Chapo & Bill Mitchell are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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