Money Smarts Blog

Here's the bad news about any unexpected, good news you receive in an email from the Internal Revenue Service: It's probably bogus.

Why? The IRS will not contact you via email, out of the blue, about a refund you didn't know you had coming. But people fall for this scam again and again. Some have received emails - with convincing IRS logos - that display a refund amount and a link you must click on to get the refund.

The link leads to a mock-IRS website form that requires financial information, such as a Social Security and bank account number, user ID, password, mother's maiden name, and the like. Victims enter this information, press “submit,” and Presto! Another identity thief now has the means to make an account balance disappear.

The bogus IRS email is an example of "phishing," which can lead to identity theft. It occurs when scammers use an authentic-looking email to trick recipients into supplying personal financial data.

Don't take the bait — it's expensive

Although phishing accounts for only a fraction of the Internet fraud committed each year, its sting goes deep. We offer a few clues that an email may be from an IRS imposter:

• Tortured English: Most phishing emails traced by the IRS originate outside the United States. Look for grammar and spelling mistakes or unusual words and sentence structures.
• No forewarning: The IRS does not make initial contact with taxpayers via email. Agents do correspond via email, such as during some audit situations, but that doesn't happen unless you provide them with your email address first.
• Your gut reaction: If it sounds too good to be true — it probably is.

Phishers exploit charity donors

Phishers also may pose as charitable organizations. Finding a list of a charity's donors isn't difficult, and criminals use the organization's identity to “go phishing”.

For example, they send emails telling donors that the charity has calculated the tax-deductible amount of their donations. Donors are asked to supply Social Security numbers or other personal data to retrieve the documentation they'll need to claim the tax deductions.

Don't guess — ask the experts

The best thing to do if you're unsure whether an email regarding taxes is legitimate is to check at irs.gov, call your local IRS office, or forward the email to phishing@irs.gov. Not only can you find the truth there—you may alert the IRS to a criminal who can be shut down before more victims are scammed.