IRS warns of biggest tax scam ever

http://www.cbsnews.com/news/irs-warns-of-biggest-tax-scam-ever/

By/Kathy Kristof/MoneyWatch/March 20, 2014

As if taxpayers don't have enough to worry about. Thousands of Americans have been conned out of more than $1 million by crooks posing as IRS agents demanding tax payments, according to the U.S. Treasury.

"This is the largest scam of its kind that we have ever seen," said J. Russell George, the Treasury inspector general for tax administration, who says the agency has received more than 20,000 complaints about the fraud.

The sophisticated phone scam has hit victims in every state, tax officials say. Callers claiming to be from the IRS tell intended victims they owe taxes and must pay using a prepaid debit card or wire transfer. The scammers threaten those who refuse to pay with arrest, deportation or loss of a business or driver's license.

To lend the scam credibility, the crooks often know the last four digits of the taxpayer's Social Security number, and the calls are made with spoofed caller identification software that makes it appear the call is originating from the IRS.

In many cases, taxpayers will get follow-up calls that appear to be from their state motor vehicle agency (if a driver's license was threatened) or the police. The scammers also send follow-up emails that mimic the IRS insignia and even appear to be signed by real IRS officials.

----- [See the link above for where to report these scams and info about other scams supposedly from the IRS.]