Watchdog group says IRS phone scam largest ever

IRS building

March 21, 2014 9:59:53 PM PDT
A government watchdog says more than 20,000 taxpayers have been targeted by fake IRS agents in the largest phone scam the agency has ever seen.

The IRS Inspector General says people posing as agents call taxpayers, telling them they owe money, and demand payment using a prepaid debit card or a wire transfer.

Those who refuse are threatened with arrest, deportation or loss of a business or driver's license.

IRS officials say real agents usually contact people first by mail and never demand payment by credit or debit card, or wire transfer.