Warning ... IRS Alerts of Tax Phone Scam

IRS Logo with social security card graphic (MGN Online)

A warning about a potential tax scam has been issued by the IRS, just in time for the start of tax season. If you owe back taxes to the IRS, you could soon get a call from a private debt collector. With so many phone scams circulating in the United States the IRS is warning consumers to be on high alert.

Legislators are now requiring the IRS to hire private collection agencies to collect back taxes, against IRS recommendations. Congress says it's as a way of raising money to pay for highway construction.

Financial advisors say these scammers are very slick and they might know a lot of personal information about you. One of the reasons why the scam has worked in the past is because these scammers often change or manipulate the caller I-D to make it actually look like it's the IRS.

The area code will appears as 2-0-2 which is the Washington D.C. area code, but the person making the call is not calling from our nation's capital. The IRS has just begun outsourcing their tax collection, which is being enforced by congress.

"The first way they're always going to reach out is through the mail and they're going to contact you and say hey there's a problem or you may owe us some taxes. So you have to be very cautious when you get these unsolicited calls."____ Jeff Bucher, President and CEO, Citizens Advisory

If a delinquent taxpayer's case is outsourced to a private debt collection agency that person will then receive a letter from the IRS with the name of the collection agency assigned to the debt and the amount that is owed. A few important tips to remember; don't give any of your personal or financial information out over the phone.

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