CPA Warns of Rising IRS Scams, Urges Community Vigilance and Compliance

As tax-related scams grow increasingly sophisticated with the use of artificial intelligence, Nepali American Certified Public Accountant Biraj Rijal is urging the community to remain alert, verify official communications and avoid panic-driven decisions.

Rijal, a seasoned financial expert with more than two decades of experience in accounting, taxation and auditing, said scammers are now using voice-cloning technology and caller ID spoofing to impersonate government officials, including Internal Revenue Service agents.

“If someone calls and threatens immediate arrest, deportation or police action, that is 100 percent a scam,” Rijal said in an interview. “The IRS never makes such threats over the phone and never asks for payment through gift cards, wire transfers or cryptocurrency.”

He emphasized that the IRS typically initiates contact through official letters sent via the U.S. Postal Service, not through unsolicited phone calls, emails or social media messages. Rijal advised individuals to hang up immediately if they suspect fraud and independently verify information through IRS.gov.

Rijal also addressed concerns about receiving official IRS notices, saying such letters should not automatically cause alarm.

“In many cases, it is simply a request for additional information or a minor discrepancy between reported income and employer records,” he said.

He encouraged taxpayers to review notice numbers such as CP or LTR codes, verify personal information, and respond within the given deadline, typically 30 to 90 days. Ignoring notices, he warned, could result in penalties or interest.

The accountant also highlighted common tax filing mistakes within the Nepali community, including underreporting cash income and tips, incorrectly claiming dependents, choosing the wrong filing status, and failing to disclose foreign bank accounts or income.

“For U.S. citizens, green card holders or resident aliens, reporting worldwide income is mandatory,” Rijal said. “Even income from Nepal — such as rent, dividends or capital gains — must be reported.”

He noted that individuals can avoid double taxation by using the foreign tax credit through Form 1116. Additionally, foreign bank accounts exceeding $10,000 at any point during the year must be reported through FBAR requirements.

Rijal cautioned against tax preparers who promise unusually high refunds, saying such claims often involve misreporting.

“There is no magic in tax law. If someone guarantees a large refund, they may be filing incorrect information,” he said. “Ultimately, the taxpayer is responsible for what is submitted.”

Beyond compliance, Rijal underscored the importance of tax filing as part of long-term financial planning. He said consistent tax reporting contributes to Social Security eligibility, which requires at least 40 work credits, or roughly 10 years of work.

“Paying taxes is not just an obligation — it is an investment in your future,” he said.

He also encouraged basic financial discipline, including following the 50-30-20 budgeting rule, maintaining an emergency fund covering three to six months of expenses, and building a strong credit score.

Rijal, who holds CGMA credentials and is a member of the American Institute of Certified Public Accountants and the New York State Society of CPAs, has been active in educating the public through media and professional forums. He also provides advisory services to small businesses and nonprofit organizations.

The interview was published as part of Khasokhas’ 14th anniversary special edition, focusing on tax awareness and financial literacy within the Nepali diaspora.