U.S. Rep. Chris Smith (NJ-04), who represents parts of Monmouth, Mercer and Ocean counties, today warned of a dangerous new telephone scam being used to target individuals across the country, with seniors at particular risk. Reports of this new scam have increased throughout the country in recent days, prompting a call to action by the Internal Revenue Service (IRS).

     In this latest con, callers will claim to be from the IRS and tell the victim that two letters have been sent to their home address, but were returned as undeliverable. The scam artist will then pressure the victim, including threatening to send police to arrest them, if payment is not made immediately through a prepaid debit card or some form of gift card. This payment would be demanded without the victim being given the time to contact their tax preparer, an attorney or the local IRS office.

     In addition, with the latest scam, the fraudster will often falsely claim that their system is tied to the IRS’ Electronic Federal Tax Payment System (EFTPS) in an attempt to further mislead the victim. The EFTPS system is automated and a taxpayer would never receive a call about this system from the IRS. The IRS notes that claiming to be calling about the EFTPS is a sign of illegal activity on the part of the caller.

     “Even though the 2017 tax season is behind us, we must stay vigilant against this and other scams year round,” said Smith. “In particular, with laws and regulations covering the IRS being complicated and subject to frequent revision, we must ensure that seniors—who are the main targets of these scammers—know about these dirty tricks. Tell your friends, parents and grandparents, together we can fight back against these schemes.”

Key facts from the IRS:

The IRS (and its authorized private collection agencies) will never:

• Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. The IRS does not use these methods for tax payments. Generally, the IRS will first mail a bill to any taxpayer who owes taxes. All tax payments should only be made payable to the U.S. Treasury and checks should never be made payable to third parties.
• 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 the taxpayer the opportunity to question or appeal the amount owed.
• Ask for credit or debit card numbers over the phone.

For anyone who doesn’t owe taxes and has no reason to think they do:

• Do not give out any information. Hang up immediately.
• Contact the Treasury Inspector General for Tax Administration to report the call. Use their IRS Impersonation Scam Reporting web page. Alternatively, call 800-366-4484.
• Report it to the Federal Trade Commission. Use the FTC Complaint Assistant on FTC.gov. Please add "IRS Telephone Scam" in the notes.

For anyone who owes tax or thinks they do:

• View your tax account information online at IRS.gov to see the actual amount you owe. You can then also review your payment options.
• Call the number on the billing notice, or call the IRS at 800-829-1040. IRS workers can help.

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