Overview
Each year, thousands of Hoosiers fall victim to tax scams that end up costing millions. Scammers use a variety of tactics such as phishing, skimming, malware, data breaches, and scare or intimidation tactics to obtain personal information. If you ever receive communication from an organization identifying themselves as a revenue-related agency or a third party hired by a revenue agency, you have the right to question their “demands” and refuse to meet their requests.
Tax fraud occurs when an individual or business entity willfully and intentionally falsifies information on a tax return to limit the amount of tax owed. This essentially means cheating on a tax return in attempts to avoid paying the entire tax obligation or receive a larger refund. Tax fraud occurs within individual, business, and tax preparations, including breaches.
Educating yourself to better understand how scammers operate and what to do when you become a target is a great start to protecting yourself and your personal information.
Scam Types
Many email scams target taxpayers by impersonating DOR, the IRS, or a "local revenue service" organization. If you receive an email, remember not to click on any links or open attachments coming from an unknown sender.
Phone
Phone scams are similarly designed to threaten taxpayers into paying money toward bogus tax bills, particularly during Individual tax season.
Remember, criminals can work around caller ID to appear to be from anywhere in the country. Question the validity of the call and/or hang up and call the agency yourself to determine credibility.
Identifying a Scam
Remember DOR does not:
- Call customers to demand immediate payment using a specific payment method, such as a prepaid debit card, gift card or wire transfer. Generally, the taxpayer will receive a bill in the mail if taxes are owed.
- Demand taxpayers to pay taxes without the opportunity to question or appeal the amount owed. Taxpayers should also be advised of their Indiana Taxpayer Bill of Rights. This does not apply to taxes that the taxpayer has self-reported.
- Threaten to bring in local police, immigration officers or other law enforcement to have the taxpayer arrested for refusing payment.
- Threaten to revoke a taxpayer’s driver’s license, business licenses or immigration status.
- Threats like these are common tactics used by scammers to persuade victims into believing their schemes.
If you are unsure about the validity of a letter, email, call or other form of communication, contact DOR Customer Service through INTIME or at 317-232-2240, Monday through Friday 8 a.m.–4:30 p.m. ET. If the communication is legitimate, we will have records to confirm and address the issue.
What to Do if You Become a Target of a Scam Artist
If individuals feel they are being targeted with a tax scam, DOR encourages them to follow these guidelines:
- Do not give the caller any personal information.
- Do not click on any links or attachments in emails unless you know it is from a legitimate source.
- When in doubt, call DOR or the IRS to confirm any correspondence.
- Report any scams to DOR.