IRS Warns Against Caribbean ‘Phishing’ Scam

by Leroy Baker, for LawandTax-News.com, New York

05 August 2005

The Internal Revenue Service has renewed its warning about an identity theft scheme targeting individuals living in the Caribbean who are receiving US sourced income.

The ‘phishing’ scheme uses fictitious IRS correspondence and an altered IRS form in an attempt to trick the foreign persons into disclosing their personal and financial data. The information fraudulently obtained is then used to steal the taxpayer’s identity and financial assets.

In this particular scam, an altered IRS Form W-8BEN, 'Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding,' is sent with correspondence purportedly from the IRS to non-resident aliens who have invested in US property, such as securities or bonds.

As in a similar warning issued in August of last year, the IRS is urging to those situated in Barbados and the Eastern Caribbean to be particularly vigilant. A similar scam targeting those who may have US-sourced income also surfaced last year in South America and Europe.

The IRS says that the real form does not ask for personal financial information, except for, in certain cases, a Social Security or IRS-Generated Taxpayer Identification Number. Moreover, such forms are sent to individuals from financial institutions, and not the IRS itself.

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