How to Avoid a Tax Relief Scam

If you owe back taxes to the IRS or State, you need to find a reliable tax resolution attorney, who will fight for you with the IRS, in order to get you the most favorable resolution for your tax problems. The most common question is how to pick the right one with so many tax relief companies out there…

Unfortunately, some tax relief companies out there are just after your money, and do not care about helping you.  These predators con you by promising solutions that they are incapable or incompetent to provide.  Even worse, after spending thousands of dollars with these companies to remedy your tax situation, they increase your debt.

Many taxpayers reported to the Federal Trade Commission (FTC) that after signing the contract with some of these companies and paying thousands in fees, these companies took even more money with unauthorized charges to their credit cards or withdrawals from bank accounts. Before signing up for anything, make sure you are dealing with professionals who are in good standing with the Better Business Bureau, and avoid the tax relief scam artists.

“Settle tax debt for pennies…”

If a company advertises this offer, run the other way.  While there are certain steps that a qualified tax resolution attorney can take to have your debt relieved, only the IRS or state tax agency can decide on the resolution amount.  Making claims and statements like that without knowing the particularities of your tax situation is illegal.

“Total elimination of your tax debt”

With the help of a qualified tax lawyer, there are remedies to help relieve your tax debt.  However, nobody can guarantee that your debt will be completely eliminated unless they negotiate that agreement on your behalf with the IRS or state tax agency.  This type of claim is also illegal for a company to make without knowing your particular case details.

“Real attorneys on staff”

Only attorneys, certified public accountants and federally authorized enrolled agents can legally represent you with the IRS. During your consultation, make sure that the company has these qualified tax professionals on staff and that they have experience working on cases similar to yours.  Ask for the license numbers issued to these professionals.  A reputable company will list their legal representatives on their website, which makes it easy for you to find the licenses on your own, whether it is the State Bar for an attorney or the IRS for an enrolled agent.

“Easy or no fee structure”

Tax relief scammers are known for taking money from taxpayers without providing a clear explanation what they are paying for. Make sure that there is a clear outline of exactly what services are covered for the fee you are paying. More importantly, look for a Price Protection Guarantee that locks the company into the fee for the services you need.  If a company promises that everything will be “free”, you should be skeptical and seek help from a more reputable company.

If you want more information on how to find a good tax resolution attorney, please read this article by Federal Tax Management Inc.

Federal Tax Management Inc. offers professional tax relief services provided by seasoned tax attorneys and IRS Enrolled Agents. Our skilled tax relief professionals have years of tax resolution experience negotiating with the IRS and State on behalf of their clients. Learn more about Federal Tax Management Inc. and read their reviews on the BBB.

Leave a comment

Copyright © 2013-2024 Federal Tax Management Inc.

Guarantee Disclaimer
**Federal Tax Management Inc. ("FTMI") will refund monies paid under the Investigation Service Agreement prior to the initial investigation being performed without any penalty or obligation. This money-back guarantee ONLY applies to the fee paid towards the Investigation Phase and NOT for those that have executed a Resolution Service Agreement. We do not guarantee that your tax debts will be lowered by a specific amount or percentage nor do we make any guarantees or promises about the outcome of proposed services..