A warning has been announced by the Internal Revenue Service to individuals residing outside the US, but having income from American sources, that they could be targeted by scam artists.

Recently, the IRS issued a press release saying it had become aware of individuals behind fraudulent schemes targeting people residing overseas, and that there were signs that the scheme was “spreading in the Caribbean area”.

Although Bermuda was not named specifically, it is understood that there are those in Bermuda who have received false requests for information from people purporting to be the IRS.

The Agency warned that the fraudulent scheme uses fictitious IRS correspondence and altered IRS forms in an attempt to trick foreign persons into disclosing personal and financial data, a practice called “phishing”.
It is known that some residents on the island of Bermuda have been targeted by those illegitimately seeking financial information under the guise of claiming they were associated with one of the Island's banks, as well as those claiming to be IRS who used letters seeking information.

Handing over this information can prove disastrous as it could pave the way for scam artists to steal a person’s identity and financial assets.

Those who feel they may have received a fraudulent request for information should contact the Treasury Inspector General for Tax Administration by calling the fraud referral hotline 1-800/880-366-4484.

If you would like more information regarding asset protection, trusts, family limited partnerships or the subject of this article please call or email our office.