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Internal Revenue Service

IRS Warns Of Collection Agency Scam

POSTED: 4:29 pm EDT August 29, 2006
UPDATED: 5:14 pm EDT August 29, 2006

It is bad enough owing money to the Internal Revenue Service, but now scam artists are trying to steal that money.

The IRS is warning taxpayers to be on the lookout for thieves posing as collection agencies.

For the first time, the IRS is using collection agencies to go after people who owe money. They will be sending out letters on Sept. 8 explaining the new policy.

The collection agency will then send out a second letter.

"Make sure you get that first letter from the IRS. You'll know if you're in the program. Let's say you don't get that first letter (but) you do get the second letter and think, 'Gee, what is this?' Call the IRS at Tax1040 to find out whether you are really are in that program," said David Stewart of the IRS.

Stewarts said people should be suspicious if they don't get a letter from the IRS before they get a letter from a collection agency.

Some other warning signs that a scam might be taking place is if the taxpayer is asked for their bank account or credit card information, or their pin number.

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