Watchdog group says IRS phone scam largest ever

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.

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