Be cautious. If you receive a letter purportedly from the IRS about an unclaimed tax refund, it’s most likely fraudulent.
That’s the message coming from the IRS, which is alerting taxpayers to a new scheme — this one involving what appears to be an official IRS correspondence.
At first glance, these mailings seem legitimate. For one, they arrive at recipients’ homes in cardboard envelopes and are delivered through a courier service. The enclosed notice bears an IRS-style masthead and contains language stating the notice is “in relation to your unclaimed refund.”
Sounds enticing, right? Free money from the government!
The letter provides contact details and a phone number — but, surprise, those do not actually connect to the IRS.
The mailing also requests personal details from taxpayers, including detailed images of driver’s licenses. Scammers can exploit that information to commit identity theft.
“This is simply the most recent in a long line of efforts by identity thieves posing as the IRS to trick people into handing over valuable personal data to steal identities and funds, including tax refunds,” said IRS Commissioner Danny Werfel.
“These scams can arrive by email, text or even targeted mailings. People should be vigilant for telltale signs that clearly identify these as IRS scams.”
What’s the Reality?
Like many scams, this one is anchored to a kernel of truth: the IRS really is encouraging U.S. taxpayers to claim uncollected 2019 tax refunds.
There’s a limited window for roughly 1.5 million Americans to claim their unclaimed 2019 tax refunds, totaling about $1.5 billion. The median refund for 2019 was $893, yet 1.5 million filers still haven’t retrieved their money. The deadline to claim is July 17.
Most people file federal income tax returns, but not everyone is required to. Many low-income households aren’t obligated to file. With 2019 returns due as the COVID-19 pandemic began, some individuals may have missed or forgotten they were owed refunds.
However, the IRS says it is not contacting individual taxpayers about this matter. If someone claiming to be the IRS contacts you about a refund, it’s not legitimate.
An Oddly Worded Mailing
This scam letter contains several classic red flags — misspellings, awkward phrasing, and strange requests. A notable aspect of this particular fraud is the attempt to get recipients to supply detailed personal documentation.
The notice instructs recipients to provide “Filing Information” for their refund. That includes a clumsily phrased demand for “A Clear Phone of Your Driver’s License That Clearly Displays All Four (4) Angles, Taken in a Place with Good Lighting.”
(Observe that it says “a clear phone,” not “a clear photo.”)
Next, the counterfeit letter asks for additional sensitive data like your mobile number, bank routing details and Social Security number.
Then there’s another awkwardly constructed line: “You’ll Need to Get This to Get Your Refunds After Filing. These Must Be Given to a Filing Agent Who Will Help You Submit Your Unclaimed Property Claim. Once You Send All The Information Please Try to Be Checking Your Email for Response From The Agents Thanks.”
Yes — definitely a scam.
What Actions Should You Take?
Discard the letter.
Beyond that, the IRS offers several recommendations:
The IRS frequently alerts the public about prevalent scams, including its annual Dirty Dozen list of common schemes.
Never click links in unsolicited emails or texts claiming to be from the IRS; they can secretly install malware or be used by cybercriminals to deploy ransomware that locks your files and systems.
You can report suspected scams to the Treasury Inspector General for Tax Administration or to the Internet Crime Complaint Center (IC3). The IRS’s Report Phishing and Online Scams page has full instructions. The Federal Communications Commission’s Smartphone Security Checker is also a helpful resource for mobile security concerns.
For added awareness, and to learn about scams spreading via phone or mail, see beware medicare scam calls, which highlights how scammers target people through calls and messages.
Alex Turner ( [email protected] ) is a senior writer at Savinly.
