Tax Season is Scam Season

Being contacted by the IRS is one of the most stressful experiences for many people, whether it’s about an audit or collections. However, the truth is that it shouldn’t be scary at all. The IRS has strict guidelines they must follow, and you have rights. Unfortunately, scammers exploit this fear to trick people out of millions of dollars every year. Knowing how to spot these scams can help protect your finances and personal information.
How to Spot a Fake IRS Contact
Mail First, Calls Later
If the IRS needs to contact you, it will be by mail first. If you receive a phone call, email, or text claiming to be from the IRS without prior written notice, it’s likely a scam. If you receive a suspicious letter, call your local IRS office to verify its authenticity.
The IRS may eventually follow up with a phone call or an in-person visit, but they will never demand immediate payment or threaten you. If an IRS agent visits you, they are required to present two forms of ID: their official IRS Pocket Commission and an HSPD-12 card. They should also allow you to call the IRS to verify their identity.
Strange Payment Requests
Scammers often request payments in unusual ways. Be suspicious if someone claiming to be from the IRS asks for:

• Gift cards
• Prepaid debit cards
• Wire transfers, including apps such as Venmo and Cash App
• Cash sent through the mail

The common denominator of the: these forms of payments are hard to track and funds are nearly impossible to recover once sent. 
The IRS does not accept direct credit card payments or any payment method outside verified third party processors listed on their official website under the “Pay” tab. Any IRS payment method will always be traceable and verifiable.
Threats and High-Pressure Tactics
Scammers use threats and urgency to create panic. They may claim you owe taxes and must pay immediately to avoid arrest, deportation, or license suspension. The IRS will never make threats or demand immediate payment without giving you the right to appeal. If someone tries to scare you into paying, hang up and verify directly with the IRS.
Offer in Compromise (OIC) Mills
Scammers also prey on those with legitimate tax debt by offering to settle for "pennies on the dollar." These OIC mills charge large fees for services they cannot legally provide. If you owe taxes, only a tax professional or an attorney—not a third-party company—can help negotiate with the IRS.
How Sandia Area Can Help
At Sandia Area, we are committed to helping our members stay protected from scams and fraud. Our Financial fraud and security center provides tools and resources, including:

• Fraud alerts to notify you of suspicious activity.
• Debit card lock to instantly disable your card if you suspect fraud.
• Identity theft prevention tips to safeguard your personal information.
• Guidance on what to do if you're a victim of fraud.

For extra security, consider adding a code word to your Sandia Area account. This provides another layer of protection to ensure only authorized individuals can access your information.
Report IRS Scams
If you believe you’ve been targeted by an IRS scam, report it immediately:

• Phone scams: Treasury Inspector General for Tax Administration at 1-800-366-4484
• Email scams: Forward suspicious messages to phishing@irs.gov
• General scams: Federal Trade Commission at FTCComplaintAssistant.gov

Stay Safe—Verify First
Scammers rely on fear and urgency to trick people into handing over their money and personal information. Always take a moment to verify before acting. If you ever feel unsure, contact Sandia Area or visit our Financial Fraud and Security Center for guidance. We’re here to help keep your finances safe.