Protect yourself
Tax scam alerts: how to spot a fake
People who owe the IRS are a favorite target for scammers, from fake IRS agents to tax relief companies that take your money and do little. Here's how to tell the real thing from a scam.
The short version
- The IRS almost always contacts you by mail first.
- The real IRS never demands payment by gift card, wire transfer, crypto or payment app.
- The IRS doesn't threaten to have you arrested or deported.
- No honest tax relief firm guarantees a settlement before reviewing your finances.
1What the real IRS does
- Sends letters by mail, usually with a notice number like CP14 or LT11 in the corner. Look up your letter.
- May call or visit after sending letters, especially for overdue balances or audits. Revenue officers carry official credentials you can ask to see.
- Uses a few private collection agencies for some old debts, but only after sending you a letter saying your account was assigned to one.
- Tells you how to pay the U.S. Treasury directly, such as through your IRS online account or IRS Direct Pay.
2What the IRS never does
- Demand immediate payment by gift card, prepaid debit card, wire transfer, crypto or payment app.
- Threaten to bring in police or immigration to arrest you for not paying.
- Demand payment without giving you a chance to question or appeal the amount.
- Ask for credit or debit card numbers over the phone.
- Start contact by text message or social media to ask for personal or financial information.
3Red flags of a bad tax relief company
- Guarantees before reviewing your finances, like "We'll settle for pennies on the dollar."
- Large fees upfront before anyone has looked at your IRS records.
- No named, licensed professional. You only talk to salespeople, and no one can give you a credential you can check.
- Pressure to sign today, or a "special program" that's about to close.
- Telling you to stop talking to the IRS or to ignore its letters.
- Asking you to pay the IRS through them instead of directly.
The FTC and state attorneys general have taken action against tax relief companies that made promises like these. A legitimate firm explains your real options, puts its fee in writing, and lets you decide. That's how we work. See our Client Bill of Rights.
4How to check if it's real
- Sign in to your IRS online account at irs.gov. If you owe, your balance will be there.
- Look up the notice number on irs.gov or in our Letter Lookup.
- Verify a tax professional's credentials. Enrolled Agents and CPAs who prepare returns are listed in the IRS Directory of Federal Tax Return Preparers.
- Don't use phone numbers or links from a suspicious message. Go to irs.gov yourself.
5How to report a scam
- Fake IRS calls or impersonation: report to the Treasury Inspector General for Tax Administration (TIGTA) through its website.
- Fake IRS emails: forward them to phishing@irs.gov.
- Bad tax relief companies: report to the FTC at ReportFraud.ftc.gov and to your state attorney general.
Not sure if a letter is real? We'll check it for free.
Answer 3 quick questions and a licensed tax pro will review your letter and tell you what it means.
Get Your Free Consultation →Keep reading
Written by Jonathan Samuel, EA, an Enrolled Agent licensed to represent taxpayers before the IRS. This page is general information, not advice for your specific situation.