A Quick Explanation of the Federal Student Tax Scam

Scammers in the United States engage in a recurring ploy which involves impersonating an official of the Internal Revenue Service. These scammers assume that people will be afraid of an IRS official and give them whatever information or money they demand.TaxScamPhoto

Some scammers try to get unsuspecting taxpayers to pay a bill over the phone. Occasionally they try to con human resource professionals into giving W-2 information over the phone. The latest variation of this scam targets students. In this article we will explore the details of this scam and provide tips on how to avoid becoming a victim.

The Student Tax Scam

The new variation of this recurring scam attempts to convince students to wire money directly to the scammer. In this scheme, the scammer will call a student taxpayer claiming to be an IRS representative. The scammer will try to get the student to wire them money to pay off an alleged tax bill. If the victim does not respond quickly enough, the scammer will threaten to send the victim to jail.

Avoiding this Scam

Now that you know this scam exists, you may be wondering how you can avoid falling victim to this scheme. First of all, realize that the IRS will never call you to discuss any taxes owed without mailing you a bill first. The Internal Revenue Service will always give you a chance to review the amount you owe and appeal if you disagree. If you suspect someone is trying to impersonate and IRS representative, don’t give them any personal information. Instead, try to get as much information from the person on the phone as you can. Report this call to the FTC and the IRS.

Image credit: JG Tax Group

Redmond CPAAbout Redmond CPA

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

  • Huddleston Tax Accountants / Huddleston Tax CPAs – Redmond, WA
    Certified Public Accountants Focused on Small Business
    8201 164th Ave NE Suite 200 / Redmond WA 98052

    Huddleston Tax CPAs & accountants provide tax preparation, tax planning, business coaching,
    QuickBooks consulting, bookkeeping, payroll, offer in compromise debt relief, and business valuation services for small business.

    We serve Tukwila, Auburn, Federal Way. We have a few meeting locations. If you are looking for a Redmond CPA firm, get in touch with us! Call to meet John C. Huddleston, J.D., LL.M., CPA, Lance Hulbert, CPA, Grace Lee-Choi, CPA, Jennifer Zhou, CPA, or Jessica Chisholm, CPA. Member WSCPA.