As college students prepare to return to campus, it's important to stay alert to scams targeting students and their families.
One scam that has resurfaced involves fraudsters impersonating the Internal Revenue Service (IRS) and claiming that students owe a fake "student tax" or "federal student tax." The scammers often pressure victims to make an immediate payment and may threaten fines, legal action, or involvement from law enforcement if payment is not made. The IRS has warned taxpayers that no such tax exists.
What you should know
- There is no such thing as a “federal student tax”.
- Official tax correspondence generally begins through mailed notices, not unexpected phone calls, text messages, emails, or social media messages.
- The IRS will not demand immediate payment without first providing an opportunity to question or appeal the amount owed.
- The IRS will not threaten arrest, police involvement, or other immediate penalties because of an unpaid tax bill.
- The IRS does not require taxpayers to pay using gift cards, wire transfers, cryptocurrency, or other unusual payment methods.
- Scammers often create a sense of urgency and discourage victims from speaking with family members or financial institution employees. Remember not to act under pressure.
What to do if you suspect a scam
If someone contacts you claiming to be from the IRS and demands money:
- Do not provide any personal or financial information, such as your Social Security number, bank account information, or passwords.
- Hang up immediately if the contact is by phone.
- Do not click links or open attachments in suspicious emails or text messages.
- Report the scam to the Federal Trade Commission through reportfraud.ftc.gov.
- If you believe you may actually owe taxes, contact the IRS directly using information available at irs.gov rather than responding to the caller or message.
- If you believe you have been targeted or have already sent money to a scammer, contact MSGCU as soon as possible to report the fraud and determine whether any transactions can be stopped or recovered.
Help protect others
Scammers often target students who may be unfamiliar with tax rules and IRS procedures. Consider sharing this information with others to help prevent classmates, friends, and family members from becoming victims.
Category: Scam Alerts
« Return to "Scam Alerts"