November Tidbits
IRS Releases Phone Scam Warning
Claiming to be from the IRS, callers will tell intended victims they owe taxes and must pay using a pre-paid debit card or wire transfer. The scammers have threatened those who refuse to pay with arrest, deportation or loss of a business or driver’s license.
Quite often the callers will:
- Use common names and fake IRS badge numbers.
- Know the last four digits of the victim’s Social Security number.
- Make caller ID appear as if the IRS is calling.
- Send bogus IRS emails to support their scam.
- Call a second time claiming to be the police or DMV, and caller ID again supports their claim.
The fact is, the IRS usually first contacts people by mail – not by phone – about unpaid taxes. No IRS agent will ask for payment using a pre-paid debit card or wire transfer or credit card.
If you get a call from someone claiming to be with the IRS asking for a payment, here is what you should do:
- HANG UP
- If you do owe federal taxes, or think you might owe taxes, call the IRS at 800-829-1040. IRS agents can help you with your payment questions.
- If you do not owe taxes, call and report the incident to the Treasury Inspector General for Tax Administration at 800-366-4484.
- You can also file a complaint with the Federal Trade Commission at FTC.gov. Add “IRS Telephone Scam” to the comments in your complaint.
Be alert for phone and email scams that use the IRS name. The IRS will never request personal or financial information by email, text or any other social media. If you do receive a “scam” email, you should forward it to phishing@irs.gov. Never open any attachments or click on any links included in those emails. You can read more about tax scams on the real IRS website, IRS.gov.
Program Now Available to Help Small Businesses Under Audit
On November 5th the Internal Revenue Service announced the nationwide rollout of a streamlined program designed to enable small businesses under audit to more quickly settle their differences with the IRS.
The program “Fast Track Settlement” (FTS) is designed to help small businesses and self-employed individuals who are under examination by the Small Business/Self Employed (SB/SE) Division of the IRS resolve the cases more quickly. FTS uses alternative dispute resolution techniques to help taxpayers save time and avoid a formal administrative appeal or lengthy litigation. As a result of this technique, audit issues can usually be resolved within 60 days, rather than months or years. Additionally, taxpayers choosing this option lose none of their rights because they still have the option to appeal even if the FTS process is unsuccessful.
Jointly administered by SB/SE and the IRS Appeals office, with the FTS program, taxpayers under examination with issues in dispute work directly with IRS representatives from SB/SE’s Examination Division and Appeals to resolve those issues. The Appeals representative typically serves as a mediator.
Either the taxpayer or the IRS examination representative may initiate Fast Track for eligible cases, usually before a 30-day letter is issued. The goal is to complete cases within 60 days of acceptance of the application in Appeals.
For more information on taking advantage of the Fast Track Settlement program, visit the Alternative Dispute Resolution webpage at IRS.gov.
