Beware of Bogus New IRS Phone Scam
The Internal Revenue Service recently issued a warning to taxpayers – including nonprofits that run for-profit enterprises, such as thrift shops – about a new telephone scam, reported numerous times across the country.
Nonprofit staff members are typically kind-hearted and eager to please, but now it’s time to put up your guard. In this deception, the fraudulent caller claims to work for the IRS and demands you make an immediate income tax payment through a prepaid debit card.
The IRS impersonator further informs you that two certified letters were sent to your organization but were returned as undeliverable. Upon rustling your feathers, the fraudulent IRS agent then threatens immediate arrest if your nonprofit-based business doesn’t make a payment using a prepaid debit card, claiming the card is linked to the EFTPS (Electronic Federal Tax Payment System), primarily used to pay taxes via the internet or telephone.
To make sure the payment is collected before you back out, the caller warns you not to contact a tax accountant preparer, an attorney or your local IRS office for an independent financial review until after the payment is made or your arrest is imminent. This should be your “red flag” moment; the IRS never threatens an abrupt arrest nor demands payment without allowing you to seek advice from a tax professional.
Note that the IRS will never:
- Call to demand immediate payment from a prepaid debit card, gift card or wire transfer;
- Threaten to arrest you for not paying taxes owed;
- Demand payment without allowing time for an appeals process;
- Ask for credit or debit card numbers over the phone.
Always keep in mind the IRS never threatens you with lawsuits, imprisonment or other enforcement action. Recognizing telltale signs of a typical tax scam could prevent your nonprofit organization from becoming a victim of criminals impersonating IRS agents.
For additional information on tax scams and tips regarding how to protect your house of worship or nonprofit business, please refer to the IRS website: https://www.irs.gov/uac/tax-scams-consumer-alerts
At Online Stewardship Accounting & Consulting Services, our experienced team takes pride in building trustworthy relationships with our clients. In short, we share your passion. Contact us at Lynn@OnlineStewardship.com or 904-398-4747.
