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Identity theft scams use IRS name

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The Internal Revenue Service reminds consumers to avoid identity theft scams using the IRS name, logo, or website in an attempt to convince taxpayers that a scam is genuine.

In an identity theft scam, a fraudster, often posing as a trusted government, financial or business institution or officials, tries to trick a victim into revealing personal and financial information, such as credit card numbers and passwords, bank account numbers and passwords, Social security numbers and more. Generally, identity thieves use someone's personal data to steal his or her financial accounts, run up charges on existing credit cards, apply for new loans, credit cards, services or benefits in the victims name and even file fraudulent tax returns.

The scams may take place through e-mail, fax, or phone.

The IRS emphasizes that it does not discuss tax account matters with taxpayers by e-mail. Making Work Pay Refund

This e-mail, which claims to come from the IRS, references the president and the Making Work Pay provision for the 2009 economic recovery law.* It says there is a refundable credit available to workers, consumers, and retirees that can be paid into the recipient's bank account if the recipient registers account information with the IRS. The e-mail contains links to register the account and claim the tax refund.

In reality, most taxpayers receive their Making Work Pay tax credit, which was designed for wager earners, in their paychecks as a result of decreased tax withholding. Consumers and retirees who are not wage earners are not eligible for this tax credit. Inheritance, winnings, others Recipients receive an e-mail claiming to come from the US Department of the Treasury notifying them they will receive millions of dollars in recovered funds or lottery winnings if they provide personal information. The e-mail may be just the first step in a multi-step scheme The victim may be contacted later by telephone or further e-mail and instructed to deposit taxes on the funds or winnings before they can receive any of it. Alternatively, they may be sent a phony check of the funds or winnings and told to deposit it but pay 10% in taxes or fees. Thinking that the check must have cleared the bank and is genuine, some people comply. However, the scammers get the taxes or fees, not the Treasury Department. Form W-8BEN

Fraudsters may modify a genuine IRS form. In this case they use the W-8BEN, Certificate of Foreign Status of Beneficial Owner for US Tax Withholding to request personal and financial information. The scammers may use the genuine form number and name or make up a new one. They either e-mail or fax the form or letter.

In reality, taxpayers file the genuine Form W-8BEN with their financial institutions, not with the IRS. Also, the genuine W-8BEN does not request the taxpayer's passport number, bank account number, security or similar information. Refund scam

A bogus e-mail claiming to come from the IRS tells the recipient he or she is eligible to receive a tax refund and the recipient is instructed to click on a link to complete a form. The refund scam is the most common, according to the IRS. Several recent variations have claimed to come from the Exempt Organizations area of the IRS. Some others have included the name and purported signature of a genuine or made-up IRS executive.

Taxpayers do not have to complete a special form to obtain a refund, taxpayer refunds are based on the tax return they submit to the IRS.

Powerful drug "Words are, of course, the most powerful drug used by mankind." -Rudyard Kipling



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© 2009 Ajo Copper News Ajo, Arizona. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from DAS.

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