Accounting Corner
BEWARE OF UNSOLICITED CALLS FROM THE “GOVERNMENT”! By: Jerry J. Killian, CPA, CCIFP * Wiss & Company LLP Scammers have been in “business” for our lifetime, but it seems that the past few years they have significantly escalated their scams against individuals and companies. I am sure everyone reading this article has gotten a call over the past few years from someone representing to be from the IRS, a Governmental Agency awarding a “grant”, Sweepstakes Winnings and others. These Scammers are out to get your personal information including credit card numbers, bank account numbers, birthdates, social security numbers and even worse, getting you to send them money. Over the past year, I have received a number of calls from my clients after they receive such a call from a Scammer and they ask me “is this call for real?” You are probably thinking that “this cannot happen to me or someone in my company”, but it is happening every day. Here are some common examples: · You receive a call from a “Governmental Agency” stating that you are eligible for free money from a governmental grant office and you were selected to receive the grant. They ask for your business or personal checking account or credit card to “deposit the grant” or they ask you for a “one time processing fee” to be paid first. The caller will use official sounding names like “Federal Grants Administration” and will also reassure you that you can get a refund of your fee if you are not satisfied. · You receive a call from the U.S. Treasury (or IRS) leaving an urgent message that you owe back taxes for certain years, and if you do not pay, you will be arrested. The caller typically calls back multiple times or may leave a call back number. They often ask you to wire the money 22
so the back taxes can be settled. They also work in teams, where they will put a “supervisor” on the line to verify what you owe. · You receive a call from a “Sweepstakes Entry”. They excitedly tell you that you have won a large sum of money from their Sweepstakes. Although you do not believe you have entered a “Sweepstakes”, you continue to listen. The scammer typically asks for a good faith deposit, processing fee, tax withholdings- all through, of course, a credit card, wire transfer or a money order. Once you continue with the conversation, they will ask to “verify” personal information which you should not give to them! · IRS notifies you that your tax return was already filed. Scammers get your social security number and file a 1040 personal tax return early in January before you do. According to the IRS, they had close to 2 million identity theft problems in 2013. In a number of these cases, refunds were issued to the scammer as they changed the address or bank account number on the return of the legitimate taxpayer. Unfortunately at this time, refunds are issued well in advance (almost a year) of the IRS matching W-2’s and 1099’s to the tax return information. The Facts First, if you receive such any calls from the above examples, hang up immediately. The IRS or a governmental agency does not communicate initially by phone. All initial correspondence from Utility and Transportation Contractor, DECEMBER 2014