A call from the IRS demanding that you pay overdue taxes is certainly a nightmare, but that is what many people are experiencing throughout the country.   Generally, the way the scam works is that you get a telephone call from someone purporting to be from the IRS telling you that you owe taxes, interest and penalties.  Your caller ID may even indicate that the call actually is from the IRS, but this too is a scam called “spoofing,” where a scammer can make it appear as if a call is coming from a legitimate source when in reality, it is not.  The caller then threatens you with arrest unless you either provide your credit card over the phone to pay the amount claimed or pay through a prepaid card, such as GreenDot cards which are the equivalent of cash.  The scam artists calling can be quite persuasive and many people are becoming victims of this scam.

TIPS

This scam is actually quite simple to avoid.  If you get a telephone call from the IRS demanding money, it is a scam, so hang up.  The IRS doesn’t call taxpayers demanding payments.  It is important to remember that you should never give your credit card number or a GreenDot card number to anyone over the phone who you have not called because you can never be sure of to whom you are speaking.  So when the IRS purports to call, just hang up.