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ASK THE CALIFORNIA EMPLOYMENT TAX AND PAYROLL TAX ATTORNEY – IRS WARNS AGAINST SCAMS TARGETING SENIORS

By Robert S. Schriebman

2024

Introduction

The IRS is warning seniors about a rise in theft impersonation scams. These scammers are targeting older adults by pretending to be government officials aiming to steal sensitive personal information and money. By posing as agents of the IRS or other government agencies, these crooks use both fear and deceit. They often masquerade as IRS agents. These crooks pressure seniors into making immediate payments through unorthodox methods such as gift cards or wire transfers under the pretense of resolving phony tax liabilities or securing false refunds.

Electronic Scams Are on the Rise

Electronic scams are on the rise with scammers sending malicious emails and texts posing as IRS representatives. The goal is to steal personal information. Historically and currently the IRS does not initially use computer-based communications such as email, texts, or social media platforms.

Examples of Scams

Don’t sell these scammers short. They are not amateurs. They use advanced techniques to fabricate the appearance of credibility. Including the manipulation of caller IDs to appear legitimate. Here are a few examples of their schemes:

  • Impersonation of known entities: Fraudsters often pose as representatives from government agencies (including IRS, Social Security and Medicare) or familiar businesses and charities. By spoofing caller IDs, scammers can deceive victims into believing they are receiving legitimate communications.
  • Claims of problems or prizes: Scammers frequently fabricate urgent scenarios, such as outstanding debts or promises of significant prize winnings. Victims may be falsely informed that they owe the IRS money, are owed a tax refund, need to verify accounts or must pay fees to claim non-existent lottery winnings.
  • Pressure for immediate action: These scammers are experts in high pressure. They are experts in applying this high pressure demanding that victims take immediate action. They do not give their target time to reflect. Common tactics include threats of arrest, deportation, suspension of license, or filing your computer with viruses.
  • Specific payment methods: scammers know that some of their actions can be traced. That’s why they insist on unconventional payment methods including wire transfers, payment apps, gift cards, and even payment by crypto currency.

Keep in Mind How the IRS Works

The IRS communicates through regular mail delivered by the USPS or telephone calls. Rarely will they visit a home or a business without advanced notice.

The IRS will never demand payment through debit cards, gift cards, or wire transfers. If a taxpayer owes the IRS, computers will issue a series of bills by mail.

The IRS will never threaten anyone with local police action or involvement of local law enforcement.

If you owe the IRS, you will first receive an opportunity for a collection due process (CDP) proceeding. This will give you an opportunity to either challenge the demand for payment or work out a payment arrangement including an installment agreement or offer in compromise. If the taxpayer cannot pay, the IRS may suspend collection due to economic hardships.

Conclusion

In March 2020, the Department of Justice introduced the National Elder Fraud Hotline to address issues relating to scammers. If you are a victim of Elder Fraud, you can call the hotline:

33-Fraud-11 or 833-372-8311.

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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 50 years to helping individual taxpayers, business owners, CPAs, Enrolled Agents, and tax attorneys navigate the complicated tax systems of the federal and state governments. Mr. Schriebman is in private practice. He is not affiliated in any way with the EDD, and he is not employed by the EDD or any other agency of the State of California.

Robert 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 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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