Commissioner's Connection

Getting a tax refund can be a lot of fun.  While a tax refund is essentially the government giving you back your own money – without interest – it can seem like a windfall that might allow you to set up your emergency savings account, add some cash to your retirement fund or IRA, or even purchase a big-ticket item such as a new television.
Unfortunately, scammers’ eyes also light up with dollar signs during tax season.  They will do whatever they have to do to separate you from your money.
Scammers not only will try to get their hands on your refund, but also may try to use tax season to get personal information from you, or to have you pay to them money they claim you owe in taxes.  For example, scammers may send you phishing emails in an attempt to capture your usernames and passwords.  Official looking mail may be sent to you offering a large tax refund in order to obtain your personal and financial information.  Scammers might call your phone, using an official-looking yet bogus phone number, impersonating the Internal Revenue Service (IRS), and threaten you with arrest, deportation, or suspension of your business or driver’s license unless payment is submitted through a pre-loaded debit card or a wire transfer.  Some scammers may attempt to use the personal information you give them to file a phony tax return and collect your refund.
While the IRS does deal with individuals that owe money to the government, they have rules that they follow.  It’s important to remember that the IRS will never:
·       Call and demand immediate payment of taxes owed
·       Call about taxes owed without first mailing you a bill
·       Demand tax payment without providing you the opportunity to appeal the demand
·       Require a specific payment method such as prepaid debit card
·       Ask for credit or debit card numbers over the phone
·       Threaten arrest by law enforcement  if you don’t pay
At the Iowa Insurance Division, we’re trying to help protect Iowans through the website www.IowaFraudFighters.gov by describing the types of scams that are used and by offer tips and resources to avoid and report scams.  The IRS also has resources available at www.irs.gov or by phone at 1-800-829-1040.
If you’re contacted by someone claiming to be from the IRS, don’t be afraid to call the IRS directly if a mailing, email, or phone call doesn’t look or sound right.  You don’t have to be Iowa-nice. It’s a good idea to hang up and contact the IRS yourself in order to know the individual you are talking with really is with the IRS.
It is important to be alert for scams and very cautious with who you give personal information to.  Knowing the tricks scammers use may be what prevents a scammer from mounting your new television on their wall.