NASHVILLE – As millions of Tennesseans prepare to file their taxes ahead of Tax Day (April 18, 2022), the Tennessee Department of Commerce & Insurance’s (TDCI) Division of Regulatory Boards and the Tennessee State Board of Accountancy remind consumers that scammers and con artists may attempt to use this hectic time of the year to perpetuate their scams.

Each year, the Internal Revenue Service (IRS) and law enforcement officials estimate that thousands of taxpayers lose millions of dollars as well as their personal information due to targeted tax scams. Scammers will often pretend to be IRS representatives in order to perpetuate their scams through a variety of ways including the mail, telephone calls, and email in order to obtain private information from individuals, businesses, and tax professionals.

“The Tennessee State Board of Accountancy is raising awareness about tax scams in order to protect both licensed accountants and unsuspecting consumers from becoming victims of unscrupulous scam artists,” said Board Executive Director Wendy Garvin. “I remind consumers to always verify who they are dealing with before making any financial payments or providing any  personal or financial information.”

The Tennessee State Board of Accountancy protects the public interest by ensuring that persons professing special competence in accountancy meet minimum requirements to be a licensed Certified Public Accountant (CPA). To learn more about Board’s mission, rules governing certified public accountants, or to file a complaint if a consumer believes he or she has been treated unfairly, visit our website here.

To help raise awareness of tax scams, TDCI is sharing the following tips from the IRS about tactics frequently used by scammers who may pretend to be IRS representatives in order to gain consumers’ valuable personal information or money.

The IRS communicates with taxpayers in the following ways:

• When the IRS needs to contact a taxpayer, the first contact is normally by letter delivered by the U.S. Postal Service. Fraudsters often send fake documents through the mail, and in some cases will claim they already notified a taxpayer by mail. Depending on the situation, IRS employees may first call or visit with a taxpayer. In some instances, the IRS sends a letter or written notice to a taxpayer in advance, but not always.
• IRS revenue agents or tax compliance officers may call a taxpayer or tax professional after mailing a notice to confirm an appointment or to discuss items for a scheduled audit.
• Private debt collectors can call taxpayers for the collection of certain outstanding inactive tax liabilities, but only after mailing the taxpayer and their representative written notice.
• In certain cases, IRS revenue officers and agents may make unannounced visits to a taxpayer’s home or place of business to discuss taxes owed, delinquent tax returns, or a business falling behind on payroll tax deposits. IRS revenue officers will request payment of taxes owed by the taxpayer. However, they will only request payments be made to the U.S. Treasury.
• When visited by someone from the IRS, who is seeking personal information or collecting a tax debt, taxpayers should always ask for credentials. IRS representatives can always provide two forms of official credentials: a pocket commission and a Personal Identity Verification Credential.
• In some cases, departments within the IRS may contact a taxpayer requesting copies of documents via email and/or fax. Taxpayers should request a way to verify the IRS employee’s identity like requesting their email address or employee badge number.

The IRS will never:

• Send text messages or contact people through social media to get personal information or collect a tax debt.
• Demand immediate payment using a specific payment method such as a prepaid debit card, gift card, or wire transfer.
• Threaten to immediately bring in local police or other law enforcement groups to have the taxpayer arrested for not paying.
• Demand that taxes be paid without giving taxpayers the opportunity to question or appeal the amount owed.
• Call unexpectedly about a tax refund.

You should report instances of IRS-related fraud to the  Treasury Inspector General for Tax Administration here or call 800-366-4484.

For other questions or concerns, contact the Tennessee State Board of Accountancy by email at accountancyboard@tn.gov or call (615) 741-2550.

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