Activate Center Back Taxes Scam Alert

People in dire need of assistance in paying off their outstanding tax debt to the Internal Revenue Service are falling victim to scams perpetrated by unscrupulous businesses and legal firms.

Tax season can be a time of stress and uncertainty, and scammers often take advantage of this vulnerability. One prevalent scam involves calls or voicemails from individuals claiming to be from “Activate Center” or a similar-sounding organization. These scammers use high-pressure tactics and threatening language to deceive people into divulging personal information or sending money.

This article provides information about the Activate Center back taxes scam, outlines its common characteristics, and offers guidance on how to protect yourself and your loved ones.

What is the Activate Center Back Taxes Scam?

The Activate Center back taxes scam is a type of phone fraud where scammers impersonate IRS agents or tax debt relief specialists. They typically contact victims through robocalls or voicemails, claiming that the victim has unpaid taxes and must make an immediate payment to avoid severe consequences such as arrest or deportation.

They may even leave official-sounding voicemails with a fake name and a callback number, like the one from “Crystal Johnson” at “Activate Solutions” who claims you can “enroll to have them forgiven by using the zero tax elimination program.

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How the Scam Works

Scammers often employ sophisticated tactics to make their calls appear legitimate. They may:

• Spoof caller ID: Scammers can manipulate caller ID to make it seem as if the call is originating from the IRS or another official agency.
• Use threatening language: They may threaten legal action, arrest, or other severe penalties if the victim does not comply with their demands. For example, they might say things like, “This is your final notice,” or “We have a warrant for your arrest.”
• Claim to offer a “Zero Tax Program”: Some scammers may try to lure victims with promises of tax forgiveness or elimination through a fictitious program. They might say, “You qualify for a special program that can eliminate your tax debt completely.”
• Demand immediate payment: Scammers typically insist on immediate payment through unconventional methods like gift cards or wire transfers. They might say, “You need to pay now or we will send the police to your house.”
• Gather personal information: They may attempt to collect sensitive information such as Social Security numbers, bank account details, or credit card numbers.
• Falsely claim “AI automation”: To make the scam seem more sophisticated, scammers may claim to use “AI automation” to determine your eligibility for tax relief. This is simply a tactic to gain your trust and make the scam seem more credible.

Red Flags for Tax Scams:

• Unexpected Contact: The IRS will generally initiate contact through official mail correspondence, not by phone, email, or text.
• Urgent Demands for Payment: Scammers often pressure you to pay immediately, threatening arrest, deportation, or other severe consequences.
• Unusual Payment Methods: They may insist on payment through prepaid debit cards, gift cards, wire transfers, or cryptocurrency.
• Requests for Personal Information: Be wary of anyone asking for your Social Security number, bank account details, or other sensitive information over the phone or through unsecure channels.
• Threats and Intimidation: Scammers may use aggressive tactics to frighten you into complying with their demands.

How to Protect Yourself:

• Don’t Panic: If you receive a suspicious communication, take a moment to assess the situation calmly.
• Verify the Contact: If someone claims to be from the IRS or another tax agency, independently verify their identity by contacting the official agency directly using publicly available contact information.
• Never Give Out Personal Information: Do not share sensitive details over the phone or via email unless you are absolutely certain of the recipient’s legitimacy.
• Report Suspicious Activity: If you believe you’ve encountered a scam, report it to the appropriate authorities, such as the IRS (in the US), the Federal Trade Commission (FTC), or your local law enforcement agency.

The first payment for these services is often rather substantial, often reaching into the hundreds of dollars. They assure customers that they may end IRS collection actions and settle any issues with the agency. Many times, unscrupulous businesses take the advance payment but never offer the tax savings that was promised.

Rather, they either give up trying to settle the past tax bill after repeatedly asking the same papers from customers or the IRS denies their attempts. Some businesses never even bother to ask the IRS to settle the obligation. Furthermore, customers often find that these businesses do not honour their requests to return the advance charge.

Be wary of claims that seem too wonderful to be true. If you want to know how to spot a tax debt relief scam, the IRS has some advice:

• First, try to resolve your problem directly with the IRS. Call the number on your IRS notice and ask about collection alternatives. You may be eligible for a monthly payment plan, or you may be able to pay less than the amount you owe.
• Don’t ignore the notices the IRS sends you.  The problem won’t go away.
• Don’t trust a company’s claim that you have “qualified” or are “eligible” for an IRS program to resolve your back tax debt. Only the IRS can make that determination.
• Be cautious about services that ask for payment in advance.

If you can’t resolve your problem with the IRS, you have options to resolve your issues for free:

1. You can seek help from a Low Income Taxpayer Clinic (LITC).  To see if you qualify for help, go to IRS’s Taxpayer Advocate Service page and click on “Low Income Tax Clinics.”  The site includes a list of clinics in your area.

2. You can contact the IRS’s Taxpayer Advocate Service (TAS). TAS employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should.

3. You can reach TAS at 1-877-777-4778 or TTY/TDD 1-800-829-4059.

The IRS Office of Professional Responsibility has jurisdiction over Enrolled Agents, Attorneys, Certified Public Accountants, Enrolled Actuaries, and Appraisers who practice before the service.  If you suspect practitioner misconduct, you can report the behavior to the IRS via e-mail at opr@irs.gov.

Tips to keep in mind:

• The IRS DOES NOT initiate contact with taxpayers by email, text messages or social media platforms to request personal or financial information.

• If you receive a call from someone claiming to be from the IRS, do not give out any of your personal information over the phone.

• If you know or think you owe taxes, call the IRS at 1.800.829.1040 to validate the call. If there is a valid issue, the IRS employees at this number will assist you.

• If you do not owe taxes and/or never received a bill in the mail prior to the call, hang up immediately. Then call the Treasury Inspector General for Tax Administration to report the incident at 1.800.366.4484.

• The Taxpayer Advocate service is real, but will not call taxpayers without reason.

• The Bureau of Tax Enforcement is not a real organization.