Stressed woman receiving a tax relief scam call

Don’t Fall for Tax Relief Scam Calls

By Cyrus Grant•

Key Takeaways:

  • Calls claiming to be from the IRS or “Tax Relief Agencies” are often scams.
  • Beware of scammers offering Offer In Compromise (OIC) services.
  • The IRS generally initiates contact about unpaid taxes by mail and does not demand immediate payment over the phone.
  • The IRS does not typically threaten arrest, credit damage, or asset seizure during unsolicited phone calls.

Ben Franklin once said, “In this world nothing can be said to be certain, except death and taxes.” It turns out there’s one other thing that seemingly can’t be avoided — scammers. Every tax season, they come up with new or altered scams to make a play at stealing your money. In recent years, the “back taxes” and “tax relief” scams have become go-tos by scammers hoping to trick you.

Today, we’ll walk through how these back taxes and tax relief scam calls typically work and how to spot them.

Back Taxes Scam Call

The gist of this scam is pretty simple. You get a call claiming to be from the IRS or a tax relief service. They’ll tell you that you owe back taxes, but that you also qualify for a tax relief program. What they’re after, however, can be slightly different based on how they run the rest of the scam.

Offer In Compromise (OIC) Mills

A scam that consistently makes the IRS’s “Dirty Dozen” scams list, OIC mills are common scams that trick you into paying excessive fees. It often works in the following way:

They promise you tax debt relief via the OIC program (which is a real IRS program) if you agree to pay them a fee. The fee is almost always excessive, and the reality is that the OIC program is built for people to do for free on their own. The worst part is that not everyone actually qualifies for OIC, so you could end up paying for a service that doesn’t even apply to you.

Tax Relief Scam Calls

While OIC Mills offer a scam service — tricking you into paying way too much for a free service — many scammers will attempt to just scare you into giving up sensitive private information or even sending money.

If you get a call claiming to be from the IRS or a “tax relief agency” claiming you haven’t paid your taxes, there’s a strong likelihood it may be a scam, especially if the call is unsolicited. Scammers will make claims that you owe back taxes, and must either send them money (usually through strange methods like money transfer apps, crypto, or gift cards) or provide some information — like your social security number — to get a misunderstanding resolved. These tactics are commonly used in attempts to steal money or personal information.

man trying to verify if he owes back taxes after receiving a back taxes scam call

How to Spot Tax Scams 

Unsolicited calls claiming to be from the IRS or a tax agency are often scams. But, you should know the exact methods they use to scare people into making the mistake of believing them:

  • They claim that if you don’t comply, an arrest warrant will be issued in your name.
  • They claim you already have an arrest warrant, and paying will clear it.
  • They will threaten your credit score.
  • They will threaten to repossess your assets (such as your home, car, etc.).

Outside of the scare tactics, there are other giveaways that it is a scam call:

  • Payment requests via wire transfer, gift cards, money apps, or crypto.
  • Phone numbers or links that don’t match official IRS contact information.
  • Phone calls rather than mailed letters.

The IRS does not typically use these tactics in initial contact with taxpayers. If you receive a phone call with any of those threats or demands, it's safest to hang up and verify the claim directly through official IRS channels.

How to Check if You Owe Back Taxes

The reason these scams work, outside of taxes being unnecessarily confusing for most, is that many people do actually owe back taxes. If you are unsure, here’s how to check:

  1. 1.
    Check if you’ve been mailed a bill by the IRS.
  2. 2.
    Visit your online IRS account at https://www.irs.gov/payments/online-account-for-individuals.
  3. 3.
    Check your account for the year in question.
  4. 4.
    View recorded tax files. 

Should there be any real issues with back taxes, the official IRS website should be your primary resource.  Should you need tax relief help, you may be able to apply for an Offer in Compromise through your IRS account, if you qualify.

FAQs about Tax Relief Scam Calls

Why am I getting tax debt relief calls?

Tax debt relief calls are most likely scams. Generally, the IRS will first mail you a bill if you owe any back taxes. They will never make unsolicited calls demanding payments or offering tax refunds.

What should I do if I receive a tax scam call?

Per the official IRS website, here’s what you can do:

How can I check if the number calling me is actually the IRS?

If you get a call claiming to be from the IRS or some other tax agency, the first thing you should do is navigate to the official IRS website and see if the number matches. Alternatively, run the number through a reverse phone search tool like PeopleWin to learn more about the number and any publicly available information that may be associated with it.

Cyrus Grant is a writer from Southern California with a background in law and dispute resolution. When he isn’t writing, he can be found deep-diving into the latest technology trends or simply spending time at the beach.