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Abatement Adjustment Scam

Abatement Adjustment Scam

The "abatement adjustment" or "tax mediation" scam is a fraudulent scheme where scammers pose as IRS or tax agency officials to steal money, personal information, or upfront fees. They claim you qualify for immediate penalty abatement, tax relief, or "new" settlement programs, pressuring victims to pay immediately.

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How to Identify

  • Initial Contact: Scammers often leave pre-recorded, urgent voicemails claiming to be from "Tax Mediation and Abatement Agency," "Tax Review Office," or similar entities.
  • False Urgency: They claim a "short window" to act, using phrases like "new 2026 programs are rolling out".
  • Fake Services: They claim to offer proprietary, "no-wait" lines to reduce your tax debt, often promising unrealistic results like reducing penalties to zero.
  • Payment Methods: Scammers often demand payment via wire transfer, cryptocurrency, gift cards, or prepaid debit cards.

Protect Yourself

  • IRS Doesn't Work This Way: The IRS sends a letter via mail first; they do not call you unexpectedly about debts.
  • Verify the Call: If the caller claims to be a private collection agency for the IRS, ask for their verification information from the letter you received.
  • Hang Up: If someone is pressuring you over the phone about a tax abatement, hang up immediately.
  • Do Not Call Back: Do not use the phone numbers left on voicemails, as these lead directly to scammers.

If Targeted

  • Report the Scam: Report scam calls to the Treasury Inspector General for Tax Administration (TIGTA) at 800-366-4484.
  • Report Scam Emails: Forward any fake, tax-related emails to phishing@irs.gov.
  • Report to Local Authorities: If you are contacted by scammers, check with local authorities for active fraud warnings, such as this Arkansas DFA Facebook post.

The IRS will never ask for payment through a private collection agency over the phone without first sending official documentation, says the IRS website.

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Abatement Adjustment Scam