Don't Get Tricked: How to Spot a Real IRS Contact from a Scam

Identity thieves are always out there, and they're constantly looking for new ways to trick you. As a busy small business owner it's crucial to know the difference between the real IRS and a scammer. Let's cut through the noise and get straight to it.

Email, Text, and Social Media: The IRS Does Not Start Here

Here's the deal: the IRS will never, ever initiate contact with you through email, text message, or social media. Full stop. If you get an email about an "audit" or a "stimulus payment," it's a scam. Period.

Watch out for these common digital traps:

Phishing emails: These are fake emails designed to look legitimate, trying to trick you into clicking on bad links – perhaps claiming to be about your business's tax ID number (like your EIN). Their goal is to steal your personal or business information.
Fake social media accounts: Scammers will create profiles that look like the IRS to hit you up about a "bill" or "refund" related to your business. They want to scare or entice you into giving them money or information.
Bogus texts: These often talk about "tax credits" or "stimulus payments" and include links to fake websites – specifically targeting busy service professionals who might quickly click on a tempting offer.

These messages are all about getting you to click a fraudulent link that could infect your computer or steal your details. The IRS only sends text messages if you've given them permission and subscribed to receive updates from them.

Letters and Notices: Your First Official Contact

Your very first contact from the IRS will almost always be a physical letter or notice in the mail. If you get one at your business address, here's how to double-check its legitimacy:

Check your IRS Online Account: Log in to your secure account at IRS.gov. If the notice, perhaps about your quarterly estimated taxes (payments you make throughout the year, especially if you're self-employed, to cover your tax bill), is real, it should be there in your official IRS file.
Compare it: Take a look at the examples of common IRS letters and notices online. Do they match the letter you just received? This helps you spot fakes.
Call them directly: If you're still unsure, call IRS customer service. Important: Don't use a phone number from the letter itself – scammers put fake numbers on their letters. Instead, look up the official IRS number on IRS.gov.
Private collection agencies: If your business gets a collection notice (a letter saying you owe money) from a private agency, make sure it has the exact same Taxpayer Authentication Number as the Notice CP40 you received directly from the IRS. This CP40 notice is the official IRS letter telling you your debt has been assigned to a private collector. If you didn't get the CP40 first, be suspicious.

Phone Calls: Rarely the First Step

An IRS agent might call you, but it's usually only after you've already received a letter or notice about an appointment or an audit related to your business. Keep these points in mind:

No threats or urgent messages: The IRS will never leave pre-recorded, urgent, or threatening messages. Scammers love to tell victims that a warrant will be issued for their arrest if they don't call back. That's a huge red flag – the IRS doesn't operate like that.
Private collection agency calls: Yes, some private collection agencies can call on behalf of the IRS to collect certain outstanding inactive tax liabilities (old, unpaid tax debts). But again, you and your representative (like your accountant) will have received a written notice first for your business, clearly stating that a private agency will be contacting you.
Note how the IRS or an Agency will NOT ask you to pay: The IRS and its authorized private collection agencies will never ask you to pay with a pre-paid card, gift card, or online gift card. If someone tells you to pay with an Apple gift card, it's a scam. For all legitimate ways to make a payment for your business, always go directly to IRS.gov/payments.

We at Freedom Line Accounting & Tax hope this post equips small business owners with essential tips to distinguish legitimate IRS contact from scams, ultimately safeguarding them from identity theft and financial fraud. Let us help you change uncertainty to certainty when it comes to communicating with the IRS.

Worried about tax scams or simply want to ensure your business is financially secure? Book a complimentary consultation with Freedom Line Accounting & Tax today. We're here to help you navigate the complexities and protect what you've built.

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