Goldenthal & Suss CPA

Don’t let grinchy scammers ruin holiday gift card giving

Taxpayers should be aware of gift card scams year-round but be especially cautious during this time of year when requests for gift cards are common. They may also use a compromised email account to send emails requesting gift card purchases for friends, family or co-workers. Since 2019, [email protected] has received over 1,000 gift card phishing emails averaging 200 per year. Most of these gift card phishing emails do not reference the IRS.

The IRS never asks for or accepts gift cards as payment for a tax bill.

Common holiday scams
The IRS sees a variety of scams as thieves are always changing their tactics. During the holiday season thieves could also:

Request gift cards over the phone, sending a text message, email or social media message through a government impersonation scam.
Pose as an IRS agent and call the taxpayer or leave a voicemail with a callback number informing the taxpayer that they are linked to some criminal activity.
Threaten or harass the taxpayer by telling them that they must pay a fictitious tax penalty.
Criminals often ask the victim to purchase gift cards from various stores so as not to arouse suspicion with store employees. Once the taxpayer buys the gift cards, the scammer will ask the taxpayer to provide the gift card number and PIN.

How to tell if it's really the IRS calling
Here are some tips on how to tell it’s the IRS calling. Remember the IRS will never:

Call to demand immediate payment using a specific payment method such as a gift card, prepaid debit card or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes.
Demand that taxpayers pay taxes without the opportunity to question or appeal the amount they owe. All taxpayers should be aware of their rights.
Threaten to bring in local police, immigration officers or other law enforcement to have the taxpayer arrested for not paying.
Threaten to revoke the taxpayer's driver's license, business licenses or immigration status.
What to do if targeted by a scam
Anyone who has been a target of a scam should contact the Treasury Inspector General for Tax Administration to report a phone scam. Use the IRS Impersonation Scam Reporting webpage or call 800-366-4484. Taxpayers targeted by phone scams can also report to the Federal Trade Commission or email IRS at [email protected].

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As the 2025 tax season approaches, the IRS encourages all taxpayers to take an important step to safeguard their identity by signing up for an Identity Protection Personal Identification Number (IP PIN).

This simple yet crucial step can provide an added layer of security, helping protect against tax-related identity theft.

The IRS encourages taxpayers to sign up for IRS Online Account, which provides a quick and easy way to obtain an IP PIN. Signing up early will ensure taxpayers have extra safety by having an IP PIN to electronically file their returns when the filing season begins in 2025.

The IRS encourages people to sign up for an IP PIN before Nov. 23, 2024. After this date, the IP PIN system will undergo maintenance and will not be available again until early January 2025. Signing up for an IP PIN now will ensure that a taxpayer’s identity is protected when the filing season begins. New IP PINs are generated for the 2025 filing season during this period, so online enrollees must retrieve their new IP PIN starting early January 2025.

An IP PIN is a six-digit number that prevents someone else from filing a federal tax return using a taxpayer’s Social Security number or Individual Taxpayer Identification Number. It’s a vital tool for ensuring the safety of taxpayers’ personal and financial information. The IP PIN, known only to an individual and the IRS, confirms their identity when they electronically file their tax return, making it much more difficult for thieves to use their information fraudulently.

How to request an IP PIN

The best way to sign up for an IP PIN is through IRS Online Account. The process requires identity verification, and spouses and dependents can also obtain an IP PIN if they complete the required verification steps. Once an IPPIN is issued, it must be on both electronic and paper returns.

To get an IP PIN, taxpayers should create or log into their online account at IRS.gov and follow the steps for identity verification. Once verified, taxpayers need to click on the profile tab to request their IP PIN. IP PIN users must use this number when filing their federal tax returns for the current calendar year and any previous years filed during that same period.

For those unable to create an Online Account, alternative methods are available, such as in-person authentication at a Taxpayer Assistance Center. More information is available on how to sign up at Get an identity protection Pin (IP PIN).

Additional information about IP PINs

An IP PIN is valid for one calendar year. For security reasons, new IP PINs are generated at the beginning of each calendar year. Some participants will receive their IP PIN in the mail, while others will have to log into their Online Account to view their current IP PIN.
Enrolled taxpayers can log back in to their Online Account to view their current IP PIN.
Taxpayers with an IP PIN must use it when filing any federal tax returns during the year, including prior year tax returns, or amended returns.
IP PIN users should share their number only with the IRS and their tax preparation provider. The IRS will never call, email, or text a request for the IP PIN.
Taxpayers can get an IP PIN now for 2024. The IRS will issue new IP PINs starting in January 2025.
Taxpayers who enrolled in the IP PIN program and have not been a victim of tax-related identity theft can opt out of the IP PIN program via their Online Account.

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