Representative Nita Lowey

Representing the 17th District of New York

Lowey Warns Lower Hudson Valley Residents about Aggressive Phone Scams during Tax Season

March 8, 2016
Press Release

Scams include threats of arrest, deportation, license revocation, or other legal action to trick unsuspecting victims into making payments

More than 5,000 victims across the country have collectively been scammed out of $26.5 million since October 2013

WHITE PLAINS, NY – Congresswoman Nita M. Lowey (Westchester/Rockland), the Ranking Member on the House Appropriations Committee, today was joined by federal and state officials at the Internal Revenue Service’s (IRS) White Plains office to warn residents about phone scams and other types of fraudulent activity plaguing taxpayers across the nation during tax season.

“Fraudsters impersonating IRS agents over the phone have tricked thousands of people across the nation into handing over millions of dollars,” said Lowey. “Even I have received calls from these scam artists, claiming I owe money to the government, and if it goes unpaid that I will face consequences. I hope everyone will recognize, avoid, and report attempts by criminals seeking to steal your hard-earned money. As Ranking Member of the House Appropriations Committee, I will continue working with federal, state, and local officials to protect families in Westchester and Rockland from scams that cause financial and emotional hardship.”

At today’s event, Lowey outlined the most recent, prevalent, and effective phone scams. Criminals impersonate IRS agents or other officials and threaten taxpayers with arrest, deportation and license revocation, among other things, to terrify unsuspecting taxpayers into making a payment. The IRS has seen a surge of phone scams, particularly during tax season, which runs from Tuesday, January 19, 2016, through tax day on Monday, April 18, 2016. Most recently, in January, the IRS Treasury Inspector General for Tax Administration (TIGTA) announced they have received reports of roughly 896,000 contacts since October 2013, and have been made aware of over 5,000 victims who have collectively been scammed out of $26.5 million.

Phone scams are just one type on the IRS’s “Dirty Dozen” list of tax scams released each year. The full list includes phishing emails, return preparer fraud, offshore tax avoidance, inflated refund claims, fake charities, falsely padding deductions on returns, excessive claims for business credits, falsifying income to claim credits, abusive tax shelters, and frivolous tax arguments. 

In June 2014, Lowey warned area seniors about the basic “grandparent scam,” in which a scammer will impersonate a senior citizen’s grandchild, often describing a situation in which the child is in a foreign country, has gotten into trouble, and is asking for immediate cash payments to escape a bad situation.

RECOGNIZING A SCAM
Residents should know that the IRS will never:

  • Call and demand immediate payment (the IRS will never call without first having mailed you a bill);
  • Demand you pay taxes without giving you the opportunity to appeal;
  • Require specific types of payment for your taxes;
  • Ask for your credit card number over the phone; or
  • Threaten to bring in law enforcement to arrest you for lack of payment.

REPORTING A SCAM
If residents think they are victims of a scam, or know they do not owe taxes or have no reason to think that they owe any taxes, they should not give callers any information. They should call and report the incident to the Treasury Inspector General for Tax Administration at 1-800-366-4484. Residents can also file a complaint using the Federal Trade Commission (FTC) Complaint Assistant; choose “Other” and then “Imposter Scams.” If the complaint involves someone impersonating the IRS, include the words “IRS Telephone Scam” in the notes. New Yorkers can also see the Attorney General’s IRS Phone Scam brochure or call the New York State Attorney General’s Hotline at 1-800-771-7755.

Lowey was joined by IRS New York Field Office Special Agents in Charge Shantelle Kitchen and Robert O’Malley, and New York Assistant Attorney General Gary Brown to spread information on how to recognize, avoid, and report attempted scams.

“With tax season upon us, shameful scam artists will be on the prowl looking to use scare tactics and false threats to con New Yorkers out of their hard-earned money,” said Attorney General Eric Schneiderman. “But you can protect yourself and your family by following a few basic tips – like never giving your personal or financial information to anyone who contacts you, no matter who they claim to represent.”

“If you are paying someone to prepare your tax return, a useful piece of advice is to choose your return preparer carefully,” said Special Agent in Charge Shantelle P. Kitchen of the IRS New York Field Office. “You should take the same care that you would take to select any other professional you hire.  Ask the preparer questions, check references, and most importantly, listen to your common sense.  I encourage all taxpayers to explore the Internal Revenue Service’s website – irs.gov – to learn about tax scams and tax related identity theft, and to find all kinds of information about preparing and filing your tax return and our nation’s tax system.”

“It is critical that all taxpayers continue to be wary of unsolicited telephone calls and e-mails from individuals claiming to be IRS and Treasury employees,” said Special Agent in Charge Robert O’Malley of the IRS TIGTA New York Field Division.  

Congresswoman Lowey has been fighting for consumers’ rights both on the national and local levels. She knows that even the most vigilant consumers sometimes find themselves the victims of fraud. She has helped hundreds of constituents with consumer protection problems and scams. For further assistance with any of these consumer problems, please contact the Congresswoman’s White Plains District Office (914-428-1707), New City District Office (845-639-3485), or her website at https://lowey.house.gov/contact.

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Issues: 
Consumer Protection