SAN ANTONIO – When 67-year-old Lattie Sidney got an urgent phone message seemingly from the IRS, she promptly returned the call. After all, she was corresponding by mail to clear up a real debt. But it was a phone call that rang up fear and fraud.
"I was so frightened and scared, I just did what they said," the U.S. Army veteran and great-grandmother said.
Sidney said she's embarrassed that she didn't recognize the red flags at the time, but shares her story in hopes of sparing someone else a similar loss.
When she called what she thought was the IRS, she said she was told she owed $4,020 and had two hours to pay up or else.
"He said, 'You will be handcuffed, arrested, taken to jail a minimum of seven days. You could be in jail seven years,'" she recalled.
She followed instructions, driving to the bank and various stores to buy iTunes cards for payment. All the while, she remained on the phone, too scared to hang up.
"He kept saying, 'Don't tell anybody,'" she said.
After each purchase she would read the number on the back of the plastic card, giving him access to the untraceable funds.
Once she'd paid the $4,000 due, she was instructed she had to start paying next year's taxes.
In all, Sidney was taken for $5,500.
The IRS warns people, saying it will never call and demand payment by iTunes or otherwise.
"We will not ask for cashier's check, money order or prepaid debit card. It's not going to happen," said Kurt Bertram, special agent with IRS criminal investigations.
Sidney isn't alone. The IRS reported at least 6,400 people have been duped out of more than $36 million.
The impersonation scheme is the most pervasive the IRS has ever seen. The latest warning involves bogus callers demanding payment for a federal student tax. There is no such thing as a federal student tax.
The cons are targeting college students, hoping to bilk them like they did Sidney.
"We just have to carry on," Sindney said.
The IRS has advice for anyone who gets a call from someone claiming to be with the IRS and who asks for payment:
- If you owe federal taxes, or think you might owe taxes, hang up and call the IRS at 800-829-1040. IRS workers can help you with your payment questions.
- If you don’t owe taxes, call and report the incident to the Treasury Inspector General for Tax Administration by calling 800-366-4484.
- You can also file a complaint with the Federal Trade Commission at FTC.gov. Add "IRS Telephone Scam" to the comments in your complaint.