Protecting Yourself From Identity Theft-Related Tax Fraud Your Guide To Taxpayer Interactions With The N.C. Department of Revenue Criminals impersonating state or federal tax employees are reportedly contacting taxpayers by phone or other means and demanding payment for fake tax debts. They use high-pressure tactics to create urgency so they can coerce you into making a payment to them. These tactics are continuously evolving and could involve mimicking (or “spoofing”) legitimate phone numbers before redirecting calls. The NCDOR has regular processes and procedures outlined by statute which govern how agency employees interact with taxpayers in the pursuit of past due taxes. Criminal Tactics That NCDOR Representatives Will Not Use The NCDOR will not contact a taxpayer in person unless the agency has first attempted to provide the taxpayer with notification(s) via mail, e-mail or phone calls. The NCDOR will not require a taxpayer to use any specific payment method unless the taxpayer is in the collection process for past-due liabilities. The NCDOR offers numerous payment options; taxpayers may choose the method that is most convenient for them. The NCDOR will not initiate communications to demand immediate payment from taxpayers via text message, social media, or email. The NCDOR will not demand a taxpayer pay taxes without first giving the taxpayer an opportunity to question or appeal the amount owed. NCDOR Representatives Will Verify Taxpayer Identification The NCDOR will require additional customer verification from taxpayers who call the agency as part of the agency’s enhanced identity theft security measures. This verification may involve Personally Identifiable Information (PII). Here is what taxpayers can expect when NCDOR does initiate contact: When a tax liability is in collections: Collection personnel may call or visit a taxpayer’s home or business unannounced to collect past due taxes. In the event an in-person visit occurs, NCDOR personnel have been trained to present credentials to validate employment with the agency. NCDOR employees will not visit a taxpayer until a notification has been sent to the taxpayer through the mail. Forced collection activities can be taken when a taxpayer becomes noncompliant with the North Carolina tax laws. Learn more about the collection process. When a taxpayer is being audited: Auditors may call taxpayers to set up appointments to discuss an ongoing audit. Auditors may visit taxpayers, but only after scheduling an appointment. In-person visits are preceded by an audit confirmation letter. When a taxpayer is being charged criminally: Investigators may visit a taxpayer’s home or business unannounced while conducting an investigation. These are Revenue Law Enforcement agents who are responsible for addressing serious, criminal tax violations and prosecution of tax fraud. Please note: processes and procedures may differ for a taxpayer who is under criminal investigation by the NCDOR. Employee Verification Procedure As an additional measure, you may use the Employee Verification Procedure to verify the identity of any Department employee who contacts you. At your request, the Department employee will provide you with their NCDOR ID badge. Next, you may call the general information number (1-877-252-3052) and provide the NCDOR ID badge number. The call agent will verify the individual is a Department employee. Additional Resources For additional information, please review this list of the leading tax scams from the IRS (updated annually), as well as additional information on protecting yourself from fraud. Report Identity Theft Report Tax Fraud Watch a Video about Tax Scammers
Protecting Yourself From Identity Theft-Related Tax Fraud Your Guide To Taxpayer Interactions With The N.C. Department of Revenue Criminals impersonating state or federal tax employees are reportedly contacting taxpayers by phone or other means and demanding payment for fake tax debts. They use high-pressure tactics to create urgency so they can coerce you into making a payment to them. These tactics are continuously evolving and could involve mimicking (or “spoofing”) legitimate phone numbers before redirecting calls. The NCDOR has regular processes and procedures outlined by statute which govern how agency employees interact with taxpayers in the pursuit of past due taxes. Criminal Tactics That NCDOR Representatives Will Not Use The NCDOR will not contact a taxpayer in person unless the agency has first attempted to provide the taxpayer with notification(s) via mail, e-mail or phone calls. The NCDOR will not require a taxpayer to use any specific payment method unless the taxpayer is in the collection process for past-due liabilities. The NCDOR offers numerous payment options; taxpayers may choose the method that is most convenient for them. The NCDOR will not initiate communications to demand immediate payment from taxpayers via text message, social media, or email. The NCDOR will not demand a taxpayer pay taxes without first giving the taxpayer an opportunity to question or appeal the amount owed. NCDOR Representatives Will Verify Taxpayer Identification The NCDOR will require additional customer verification from taxpayers who call the agency as part of the agency’s enhanced identity theft security measures. This verification may involve Personally Identifiable Information (PII). Here is what taxpayers can expect when NCDOR does initiate contact: When a tax liability is in collections: Collection personnel may call or visit a taxpayer’s home or business unannounced to collect past due taxes. In the event an in-person visit occurs, NCDOR personnel have been trained to present credentials to validate employment with the agency. NCDOR employees will not visit a taxpayer until a notification has been sent to the taxpayer through the mail. Forced collection activities can be taken when a taxpayer becomes noncompliant with the North Carolina tax laws. Learn more about the collection process. When a taxpayer is being audited: Auditors may call taxpayers to set up appointments to discuss an ongoing audit. Auditors may visit taxpayers, but only after scheduling an appointment. In-person visits are preceded by an audit confirmation letter. When a taxpayer is being charged criminally: Investigators may visit a taxpayer’s home or business unannounced while conducting an investigation. These are Revenue Law Enforcement agents who are responsible for addressing serious, criminal tax violations and prosecution of tax fraud. Please note: processes and procedures may differ for a taxpayer who is under criminal investigation by the NCDOR. Employee Verification Procedure As an additional measure, you may use the Employee Verification Procedure to verify the identity of any Department employee who contacts you. At your request, the Department employee will provide you with their NCDOR ID badge. Next, you may call the general information number (1-877-252-3052) and provide the NCDOR ID badge number. The call agent will verify the individual is a Department employee. Additional Resources For additional information, please review this list of the leading tax scams from the IRS (updated annually), as well as additional information on protecting yourself from fraud. Report Identity Theft Report Tax Fraud Watch a Video about Tax Scammers
