Welcome to the Logix SmartLab

Stay Alert of This Tax Scam

Posted by Sherlogix Holmes on 12/19/2018


‘Tis the season for gift card purchases. They’re great for friends, family, and co-workers; pretty much anyone likes receiving one as a present, but there are two groups who don’t want gift cards: the Internal Revenue Service (IRS) and the Social Security Administration (SSA).

The IRS website shows the following ways to pay your federal taxes:

  • Debit or Credit Card
  • “Direct Pay” (using your routing and account number)
  • Wire Transfer
  • Personal Checks
  • Money Orders
  • Cash

What's not listed as an acceptable method of payment is paying your annual tax bill with an iTunes gift card, Target gift card, or any other gift card.

Just like you wouldn’t pay your rent with gift cards, you won’t pay your tax bill with them either. Many victims of this type of tax scam report receiving calls from fraudsters who claim to be from the IRS and relay that there is a “supplemental tax bill” or “back taxes” owed that must be paid immediately, or “else.” Others have received fraud calls stating that the Social Security Administration has overpaid them, and they need to pay back the funds. Usually there is a threat of imminent arrest and incarceration, or threats of larger fines down the road if the victim doesn’t pay immediately.

Keep these helpful tips in mind:

  • The SSA and the IRS will ALWAYS start by mailing a letter.
  • The SSA and the IRS will NEVER call you requesting information.
  • The SSA and the IRS will NEVER email you.
  • The SSA and the IRS will NEVER ask for payment in anything other than U.S. Dollars.

Don’t let these scammers win; if someone calls claiming to be from the Social Security Administration or the IRS, thank them for the call, hang up, and call the main office to confirm the call’s legitimacy. If a caller asks for personal information, hang up. If a caller tells you that you need to buy gift cards, hang up.

Let’s keep you and your money safe.

To reach the Internal Revenue Service or Social Security Administration or to learn more about phishing, please see below.

IRS Phone: 800-829-1040


Social Security: 800-772-1213


Topics: Fraud & Identity Theft

Meet the blogger

Sherlogix Holmes

Sherlogix Holmes

All things fraud news and fraud prevention tips presented by Logix Fraud Risk Management. We know the importance of staying apprised of fraud trends and want to share our knowledge so you, too, can combat fraud and spread the word to family and friends.

Hi there! Come on in.

Feel free to peruse about. Here you’ll find stories, posts and tools aimed to assist you as you’re faced with daily to once-in-a-lifetime financial quandaries. This is your SmartLab (lab coat optional). We want you to get the most from our articles, and we welcome your ideas to help us continue to bring valuable content to you. Check out the comment section at the bottom of every post for easy ways to share feedback. We’re learning, too, and what better way to encourage smarter banking than to share tips and resources with each other? Not to mention, it’s a great chance for us to get to know each other!

Subscribe to Email Updates

Recent Posts