The increase in telephone scams, phishing activity, and identity theft has resulted in a new policy as of May 6, 2016, from the Internal Revenue Service: When launching an audit, the IRS will contact you by mail, never by telephone.
The change was prompted by an apparent scam in Iowa, where taxpayers were receiving phone calls from alleged IRS employees trying to set up audits. An unexpected call from someone claiming to be from the IRS is almost certainly a scam.
The IRS is also re-examining other areas in which taxpayers are contacted by the IRS via telephone.
Should the IRS launch an examination, you will receive notification in a contact letter that identifies an IRS representative. You then have 14 calendar days from the mailing of the letter to respond before the IRS will try to contact you by phone.
In a separate phone scam, taxpayers have received calls from IRS impersonators demanding payment for the federal student tax and threatening to report the taxpayer to the police. There is no federal student tax. Do not wire money. Ignore this call.
Questions? Contact your advisor or Saul Brenner, CPA, J.D., LL.M. Berdon LLP, New York Accountants