Tax Relief Scams 

The Internal Revenue Service (IRS) has stepped up its effort to collect tax debt exceeding $280 billion from businesses and individuals. Sadly, due to the circumstances that COVID-19 created many Americans are not able to pay back their taxes and are facing severe interest and penalties in some cases there have been liens and levies on properties and bank accounts. In the wake of this crisis, a new type of business has risen to help taxpayers with their tax situation.

Referred to as tax settlement firms that are legally established and promise you the world and set unrealistic expectations like reducing or completely eliminating your IRS tax debt. Regrettably, the tax relief industry has attracted circling vultures waiting to prey on those who are weakened by the threat of IRS action. Protect and educate yourself from the common tax resolution scam by reading our tips on how to protect yourself below. 

Scam #1 The Outright Scam Artist 

Heartlessly, some tax relief firms blatantly cheat and steal from their clients. Ultimately these firms are shut down by the Attorney Generals. These firms have tarnished the tax relief industry. These companies will sign up clients into a program without providing satisfactory services and may not send the necessary paperwork to the IRS. 

When a tax relief firm received too many complaints or unsatisfied clients, the scammer will change their name and start preying on consumers again. With no remorse, these companies won’t provide refunds leaving people with a metropolis of tax debt.  

Scam #2 Lead Generation Companies Posing as Tax Resolution Professionals 

Many companies buy and sell leads. This is also true for the tax relief industry as well. Marketing companies will lead consumers into believing that they are dealing with an actual firm that does tax resolution cases. However, these companies just buy and sell information to tax settlement firms which results in you receiving endless amounts of phone calls. 

Sadly, these marketing companies have no control over the settlement process or even the type of service you will receive. These companies enroll people seeking help with no intention of servicing their case. 

Scam #3 Collecting Non-Refundable Payments Without Any Guarantees

The most common tax debt settlement scam is when unethical firms collect payments for results they know are unpredictable or impossible to achieve. You may have heard radio or tv ads where previous IRS agents claim they can settle your tax deficit for pennies on the dollar. What these companies don’t shed light on is how challenging it is for the IRS to approve an Offer in Compromise. 

Be careful of companies that ask you to commit a great sum of money upfront without investigating your tax liability. Our tax resolution professionals have years of experience and recognize that each tax relief case is different. The fact is not everyone will qualify for tax relief, but at Fresh Tax Solutions, we’ll use unlimited resources and promise transparency and honesty during the course of your case.