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ASK THE EDD ATTORNEY – BEWARE OF TAX SCAM INVOLVING THE BOGUS “FEDERAL STUDENT TAX”

By Robert S. Schriebman

June 16, 2016

Introduction

It is mid-June 2016 and the April 15 filing season has passed. Yet the tax scammers are at it again. This time they are calling people, especially senior citizens and students, and demanding that they wire money to them to pay their delinquent Federal Student Tax. This week we received a call in the office from someone who was duped into sending these scammers money for the payment of this bogus tax.

There is no such thing as a Federal Student Tax; it is a complete fabrication. The scammers try to convince people to wire them money immediately or face dire consequences including calling the local police.

In this article we will discuss this scam and how the IRS is dealing with it.

The Federal Student Tax Scam

On May 27, 2016 the IRS issued IR-2016-81 dealing with The Federal Student Tax scam. IRS Commissioner John Koskinen said, "These scams and schemes continue to evolve nationwide, and now they're trying to trick students. Taxpayers should remain vigilant and not fall prey to these aggressive calls demanding immediate payment of a tax supposedly owed."

These scam artists pass themselves off as either IRS agents or agents from a state taxing authority such as the FTB. They threaten and bully people. The threats include threats of arrest, deportation, or revocation of your driver's license.

Other Current Tax Scams

In its Press Release the IRS also warned of tax schemes that are currently being foisted on the public. These scams include the following:

  • Demanding immediate tax payment for taxes owed on an iTunes gift card.
  • Soliciting W-2 information from payroll and human resources professionals.
  • "Verifying" tax return information over the phone.
  • Pretending to be from the tax preparation industry.

How To Protect Yourself from Scammers

No one is immune from these calls. We get them at our house too. The IRS suggests that you do the following to protect yourself:

  • Assume that any telephone call you get from "the Taxman" is phony. Hang up immediately.
  • Do not give these callers any information whatsoever.
  • Call the special number at the Treasury Inspector General's Office. 1.800.366.4484. This is the "IRS Impersonation Scam Reporting" direct line.
  • If you think you owe taxes, call this special number at the IRS. 1.800.829.1040
  • Call us, we can tell you whether the call is genuine or not.

Conclusion

This is not the last article I will write about tax scams. These scammers exist to separate you from your money. They are smart and they are creative - and they make money at it. There will be more scams and I will tell you about them.

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Robert Schriebman has a successful practice in the Rolling Hills Estates area of Los Angeles County serving clients throughout California and the United States. He has successfully dedicated more than 40 years to helping individual taxpayers, business owners, CPAs, Enrolled Agents, and tax attorneys navigate the complicated tax systems of the federal and state governments.

Robert S. Schriebman has written the only 2 books ever published dealing with how California Employment Development Department (EDD) operates. See "California Tax Collection Practice and Procedures" and "California Taxation Practice and Procedure," both published by Commerce Clearing House.

Robert Schriebman has written over 20 books including the major manual used nationally by practitioners and the IRS, "IRS Tax Collection Procedures – A Manual for Practitioners" published by Commerce Clearing House.

Robert Schriebman has written over 20 books including the major manual used nationally by practitioners and the IRS, "IRS Tax Collection Procedures - A Manual for Practitioners" published by Commerce Clearing House.

Robert Schriebman has written over 20 books including the major manual used nationally by practitioners and the IRS, "IRS Tax Collection Procedures – A Manual for Practitioners" published by Commerce Clearing House in addition to the only 2 books ever published dealing with how California Employment Development Department (EDD) operates. See "California Tax Collection Practice and Procedures" and "California Taxation Practice and Procedure," both published by Commerce Clearing House.

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