Fake IRS Letter: How to Verify a Real IRS Notice

Every year, the IRS sends out millions of letters to taxpayers – but unfortunately, so do scammers who prey on your fear of the IRS. How do you know if the letter you just received is real or fake? Luckily, there are several reliable methods you can use to verify whether or not an IRS letter is real.

If you’re struggling to figure out if your tax notice is real or fraudulent, we can help. And if your IRS notice turns out to be legitimate, our team of tax professionals can help you address your tax problems head-on. Contact us today at The W Tax Group to learn more.

Key Takeaways

• Scammers use publicly filed tax liens to identify who owes taxes.
• Then, they send taxpayers letters that look like they’re from the IRS.
• But the letters are designed to trick people into giving up personal information or signing up for tax resolution services. 
• Real IRS notices include a notice or letter number.
• The IRS does not demand immediate payment, especially in the form of gift cards or cryptocurrency.
• If you are uncertain if a letter is real or not, call the IRS number from their website instead of calling the number on the letter.

Red Flags That You Have Received a Fake IRS Letter

There are a lot of warning signs that can help you determine if you’re dealing with a fake IRS letter. When trying to decide if a notice or letter is from the IRS, keep an eye out for the following issues.

1. You don’t think you owe any money to the IRS. 

If you don’t have any tax debt, the letter is definitely a scam. Most scam letters threaten aggressive collection tactics to scare the victim into sending money to the scam artist. Even if you owe a debt that you aren’t aware of, the IRS’s first letter won’t threaten collection actions. Instead, it will just alert you about the balance owed and outline your payment options. If you’re unsure whether or not you owe the IRS money, you can log on to your IRS account to find out directly from the agency itself.

That said, owing a tax debt doesn’t mean that your letter is real. Both scam artists and tax debt resolution companies look at public records of tax liens, and they often send letters to people who owe tax debts. If you owe money to the IRS or a state tax agency, you need to be extra cautious about the risk of scam letters. 

2. Missing the IRS logo or the correct taxpayer information. 

The IRS always prints its logo on the top left side of its letters. The right side of most real IRS letters shows the name of the notice (often two letters followed by a number, such as LT11 or CP501), the notice date, and your truncated taxpayer ID number (Social Security Number, EIN, or individual taxpayer identification number).

Most new IRS letters also contain a link to the IRS webpage explaining the notice. For example, if you receive IRS Notice CP75, it will probably say “https://irs.gov/cp75” somewhere in the header. Scammers typically aren’t going to direct you to the IRS’s website – they want you to contact them instead.

3. Misspellings, grammatical errors, or odd syntax

A lot of IRS scam letters are written by scammers who speak English as a second language. If you see grammatical errors or the wording just doesn’t feel right, you may have received a scam letter. This is a big red flag because the IRS always uses proper grammar and correct spelling. 

They have also taken measures in recent years to make their letters as easy to read as possible so taxpayers of all reading levels can understand them. However, just because the letter has perfect grammar doesn’t mean that it’s real. You also have to take into account all of the other elements on this list. 

4. Incorrect language

This can be a hard issue for non-tax professionals to spot, but scam letters often use different language than real IRS letters. In particular, they may include the following phrases: distraint warrant, notice of warranted lien, and seizure and forfeiture may be imminent due to nonpayment. 

The IRS doesn’t use these phrases – instead, the agency really likes to use the phrase “in jeopardy of lien or levy.” This is why talking to a tax professional can be helpful; they can often take one look at a scam letter and point out several errors.

5. Threatening demand for immediate payment.

The IRS demands payments from taxpayers. In fact, some real IRS letters are called “Demand for Payment” notices. For example, the CP14 notice is sometimes called a demand for payment letter.

However, the IRS always gives you at least a 20 to 30-day notice before taking final collection actions against you. For instance, if the IRS is going to seize your assets or garnish your wages, it must notify you at least 30 days before doing so. The only exceptions are if the IRS is seizing your tax refund, the collection of the tax is in jeopardy, or, in certain cases, with unpaid payroll taxes. 

Scammers, in contrast, almost always demand immediate payment. Their scams are more successful when they create a sense of urgency and scare victims. When scammers send out these types of letters, they don’t want you to do research. They want you to feel scared so that you call the number on the notice and make a payment. Some scammers may even threaten jail or prison time. The IRS doesn’t make these threats in letters; if they’re investigating you for tax fraud, they are doing so quietly and efficiently behind the scenes.

6. Irregular payment requests

If you owe money to the IRS, you make the payment to the Department of the Treasury. If you owe back taxes to your state, you make your payment to the state revenue agency. Scammers, however, often request payments to other entities, and in some cases, they request gift cards, wire transfers, or other unusual types of payments. 

Some IRS scam letters tell you that you will win a prize if you pay your bill. This is another red flag. The IRS doesn’t give out prizes. It collects taxes. 

7. Lacking an official IRS letter envelope.

Real IRS letters come in official envelopes. They note the “Department of the Treasury, Internal Revenue Service” followed by a few different addresses. Under that, there is some text that says “Official Business Penalty for Private Use.” 

Official IRS envelopes usually have a window that shows your name and address printed on a piece of paper in the envelope. If you’re still not sure if the letter is real or not, you can call the IRS directly. Do not call the number on the letter. If the letter is fake, the phone number is also fake. Instead, call the IRS’s main phone number: (800) 829-1040 for individuals, (800)-829-4933 for businesses, or (877) 829-5500 for non-profits.

You should expect to deal with long hold times when you call the IRS. In fact, that’s another red flag of tax scams. If you call a phone number from a fake letter and someone answers immediately, you’re probably not talking to the IRS.

IRS Scam Letters From Scam Artists

The most popular type of IRS scam letter is from a scam artist who is trying to steal your money. These letters say that you owe money to the IRS, and they often threaten severe consequences such as asset seizures or jail time.

They also direct you to a phone number that you should call. Once you call, the person on the other end of the line will pretend that they are from the IRS, and they will continue the threats and scare tactics. 

They will try to get you to make a payment during the phone call. Scam artists know that urgency is critical. They know that if you get off the phone and do more research, you’ll figure out that the letter was a scam and you won’t call back. Don’t be pressured by their tactics. This is another sign that you’re not dealing with the IRS. 

Fake IRS Letters From Tax Debt Relief Companies

Sometimes, unscrupulous tax debt relief companies use fake IRS letters as a marketing strategy. Generally, the letters don’t pretend to be from the IRS or another tax agency. Instead, they pretend to be from fake places like the Tax Processing Unit, the Tax Resolution Unit, or the Domestic Judgment Registry. That sleight of hand prevents these companies from incurring legal risks for impersonating the government.

These letters may reference a real tax debt; remember that tax liens are public record, and these companies use that information to scare you into calling them. Marketing letters tend to have a paragraph similar to the following:

“The federal tax authorities have placed a lien against your assets for x amount. You have failed to make payments, and now, you may face collection actions. To protect yourself from losing your home, car, or other assets, call this phone number in five days.”

Then, when you call, you reach a salesperson at a tax debt relief company. Generally, this is not a licensed tax professional. It’s a salesperson who will try to talk you into setting up services with the company.

From that point on, the results may vary. The company may resolve your tax debt, but in most cases they will also overcharge you and provide subpar services. For instance, they may cut corners so that you end up paying more than you would have if you had worked with a more skilled tax professional. 

In other cases, the company may just take your money and run. Or they may get you to pay a high upfront fee, and then they may purposefully take so long to deal with your account that you end up hiring someone else to help you. These letters aren’t scams per se, but they are a very unethical type of advertising. Don’t work with a company that uses these tactics. To protect yourself, check out our guide on how to avoid tax relief scams.

If a company provides high-quality tax resolution services, it will never resort to these tactics. Instead, it will rely on honest marketing tactics, and it will have a lot of positive reviews from satisfied customers. 

What to Do If You Really Owe Money to the IRS

Sometimes, receiving a fake IRS letter can be a call to action to deal with your real tax debt. The IRS has many different programs to help people get caught up on their back taxes. This includes monthly payment plans, offers in compromise, penalty abatement, and more.

Ready to get help from real professionals? Contact us today. At The W Tax Group, we are focused on helping taxpayers get lasting relief from their tax debt. We work closely with our clients to help them find personalized solutions for their unique problems. Call us at 877-500-4930 or reach out online now.

FAQs About Fake IRS Letters

How do you report tax scams?

You can report the letter to the IRS by emailing a copy to phishing@irs.gov. This helps the IRS understand the tactics that scammers are using to attack people, and it can help them track down scam artists.

Does the IRS contact taxpayers on social media?

No, the IRS never contacts taxpayers on social media. However, scammers may use social media to reach out to taxpayers and try to trick them into giving up personal details, bank info, or payments. 

How does the IRS really contact taxpayers?

The IRS primarily contacts taxpayers through the mail. The agency doesn’t reach out through email, social media, or text. In some cases, the IRS will call taxpayers. The agency also uses third-party collection agencies to contact taxpayers. But in both cases, you will receive a letter before you get a phone call.

Why should I avoid tax relief companies that use deceptive advertising?

If a company has to deceive you to get you to sign up for their services, that is not a good sign. Ideally, you want trustworthy, transparent help if you have tax problems. Look for a tax relief company that uses honest advertising and is led by licensed tax professionals.

Stephen A Weisberg