Fake Tax Agents are on the Attack. Here how to Fight Back

by Mohimenul Islam SEO service provider

The reasons tax office impersonators have had success is that they use software to make their phone numbers, emails, logins, and conversations match those of the official tax office as closely as possible. It is an advanced attack. And the threat of tax audit penalties or court action, often completely out of the blue, can shake up even the most hard-headed taxpayers.

But there are common ways in which these fake ATO agents differ from the real deal.

Scammers will tell you that you are committing tax fraud, a complaint has made against you, or declare a debt, and it’s the first time you’ve heard about it.
Scammers will often resort to bullying, demanding that you pay up without allowing you to ask questions about their legitimacy or the nature of your supposed debt. They may even threaten you with arrest or court action. Again, the ATO will never resort to such tactics.
Scammers will often demand immediate payment, often through less than usual payment methods such as iTunes, Bitcoin cryptocurrency, store gift cards or pre-paid visa cards. The ATO does not use these methods and never demands immediate payment.
Scammers will often try to keep you on the line until you commit to pay or send them the information they need. They don’t like it if you wish to consult with your tax advisor or seek further advice.
Both phone and email scammers will offer tax refunds or perhaps simply ask for an update on your tax info, but you will need to do so by providing personal credit card information. They do this to steal money using this info. The ATO will not offer refunds to credit cards.

No matter how officious, demanding, or even threatening the person may be, do not make payments until you have taken the time to verify that you are actually paying a specific tax office debt or updating the information to a legitimate site or portal. Verification is key. Remember, when paying any tax office debt you need to indicate the type of tax the payment is for (such as income tax or an integrated client account). Talk to friends and family and people you trust; contact an outsourced CFO help for quick but high-level advice. Consider the reality of your other business investments and grants, and any business dealings you have had overseas. Have they received similar phone calls or emails?

Be guarded on the phone and by email – do not freely give away personal information unless you have verified the recipient, do not share such information on social media, and do not click on links, download files, open attachments, or upload information until you have followed the below steps.
Do not immediately act on the call or email or follow the caller’s or sender’s instructions.
Discuss the call or email with your tax accountant or a reputable, experienced tax and business advisory team
Log in to myGov to check the status of your tax affairs, or call your tax accountant or the ATO for clarification about your debts.
Be mindful that the genuine ATO only accepts certain payment methods such as Bpay (the ATO biller code has always been 75556) or cheque paid at the post office.

But there are a number of strong ways to prepare for, and indeed, prevent, a tax audit. Tax audit protection in the form of audit insurance is increasingly becoming a common risk management strategy. Many businesses these days take out or upgrade existing insurance policies to include insurance in the event of a government audit (e.g. ATO, State Revenue Office or Workers Compensation Audit). An expert tax accountant may be able to create options with an ATO tax audit that might soften the consequences on your business.