I should also mention that I had a number of my clients, many of them were retirees, who received phone calls claiming to be from the IRS. This “agent” informed them of an outstanding balance (taxes, penalties and/or interest). The agent would demand that it be paid immediately by transferring cash or providing your bank/credit card information.

DO NOT PAY IT! This is a scam, the IRS does not call taxpayers. In fact, the IRS doesn’t send e-mails either. The IRS is required by law to first notify you of any tax, penalties or interest due by letter sent to you through the US Postal Service. If you fail to respond to their letters, they will actually send you a final letter via certified mail. The IRS will not call you even should you fail to respond. The reason for this is because the IRS has no way to verify that the person on the phone is the taxpayer in question.