Avoid Tax Lien Scams

A tax lien scam is a fraudulent scheme in which an individual or organization uses advanced strategies to trick you into relinquishing your right to own valuable property. By becoming knowledgeable about these tactics and learning how to protect yourself, you can avoid falling prey to this scam.

One common way that scammers manipulate people into giving up their tax lien rights is by offering higher returns than you would typically receive from other investment opportunities. While these promises of high yields may seem tempting, it is essential to remember that investing in tax liens comes with inherent risks, and those higher returns can often result from fraudulent or unethical practices.

To protect yourself from tax lien scams, becoming an expert in tax lien investing is essential. This involves doing thorough research on potential investments and working with reputable professionals who can provide you with the guidance and support you need to make informed decisions. With the proper knowledge and strategies, you can mitigate the risk of falling victim to tax lien fraud while earning consistent, reliable returns from this investment opportunity.

Essential Identifiers to Detect any Tax Lien Scam Scheme

  • This scheme involves a tax lien letter threatening an IRS (Internal Revenue Services) lien or levy.
  • The scammer mails the letter to a taxpayer who has his tax due.
  • The lien or levy is based on fraudulent overdue taxes owed to an agency that does not exist in actuality.
  • These hypothetical agencies might have a genuine-sounding name like the “Bureau of Tax Enforcement.” But there is no such agency.
  • This tax lien scam may also refer to the Internal Revenue Service to confuse potential victims into thinking the letter is from a genuine agency.

What to do if you Receive a Fake Tax Lien Letter:

But doesn’t owe taxes

  • Contact the Treasury Inspector General for Tax Administration to report the letter. The taxpayer should use the IRS Impersonation Scam Reporting webpage. When reporting the scam, they should include the keywords “IRS Lien.”
  • Scan the received tax lien letter and mail it to phishing@irs.gov. 
  • Report the concern to the Federal Trade Commission using the FTC Complaint Assistant on FTC.gov.
  • Report the matter to the FBI’s Internet Crime Complaint Center or IC3.

And is unsure about owing the taxes. 

  • The IRS website provides a user-friendly and fast way to review one’s tax account information. It also shows whether or not they owe any money and the amount owed (if applicable). This makes it possible for you, the taxpayer, to get the information as soon as possible.
  • Still unsure – Call the IRS at 800-829-1040 to confirm the notice.
  • The experts and tax specialists at Tax Lien Code are here to assist you if you believe you may owe taxes. Call us or send us an email.