Substitute Form 1040 Fax Scam

Scam artists are now using fax machines to commit identity theft. This scam consists of a cover letter and form that are faxed, rather than e-mailed. The cover letter is addressed, “Dear Valued Tax Payer (sic),” and appears to be signed by an Internal Revenue Service (IRS) employee. The letter says that the IRS is updating its files and that recipients who supply the requested information will receive a nominal tax refund. It also states that those who fail to return the completed form immediately risk additional tax and withholding. The attached form is labeled a substitute Form 1040 and is titled “Certificate of Current Status of Beneficial Owner For United States Tax Recertification & Withholding.” It requests a large amount of detailed personal and financial information, such as mother’s maiden name (often used in security screening), bank account numbers, estimated assets, and more. It asks the recipient to sign and fax back the completed form, as well as a copy of the recipient’s driver’s license and passport.

The letter, signature, and form are all fraudulent. Moreover, the IRS does not send unsolicited faxes to taxpayers and does not request such detailed personal and financial information.

What to do:

Those who have received a questionable fax from the IRS should use the phishing@irs.gov mailbox to notify the IRS. For more information, see news releases IR-2004-104 and IR-2004-75.

Reference: IRS News Release, July 10,2008

Source: Robert H. Flashman, Extension Specialist, University of Kentucky Cooperative Extension Service