A Dreaded Tax Relief Scam: Have the Right Protection
Today the IRS has more than 280 billion dollars of uncollected taxes. Because of this, the IRS has increased its efforts to collect unpaid back taxes. Those who cannot pay back their taxes can eventually have their assets seized and their wages garnished. Often some companies take advantage of those in debt to the IRS. They may be part of a tax relief scam.
With conditions being rough for those who owe a huge tax debt, “tax settlement firms” are a popular solution. These legal entities “claim” they can condense or completely pay off whatever the client owes to the IRS. The Tax Relief Industry has weakened the threat IRS has over taxpayers. The wrong entities are telling taxpayers the wrong information.
Taxpayers need to protect themselves from fraudulent tax relief businesses, the tax relief scams they commit and tips on how to protect themselves.
Top Tax Relief Scams
Tax Relief Scam #1 – Lead Generation Companies
Lead generation companies pose as tax relief professionals and lead customers into believing they are dealing with a tax relief business when they are working with a marketing company that specializes in buying and selling customer information.
Instead of helping taxpayers pay off their tax debt, these companies sell customers’ information multiple times to tax relief companies but don’t care if the customers find relief or not.
Many times, they sell information to other marketing companies as well. With customers’ information floating around, taxpayers are plagued with non-stop solicitation and harassment.
Lead generation companies never attempt to help taxpayers; they do not intend to service the taxpayer in paying off their tax debt. They do not even know or care to know how the resolution process works or how they could have helped the taxpayer.
Tax Relief Scam #2 – Collection of Payment with No Guarantee
Taxpayers need to be wary of the collection of payments. There are no guarantees when it comes to tax relief. Every case is different. Often, companies involved in tax relief scams ask for payment upfront.
That is why if a company asks for a large sum of money before an investigation, the taxpayer should be suspicious, and they should know that not everyone qualifies for tax relief and some programs like the IRS Offer in Compromise program are very difficult to get. Quick and easy fixes are usually not as great as they seem.
Tax Relief Scam #3 – The Ultimate Scam Artists
Some of the worst tax relief scam artists have cheated and stole from taxpayers; they may enroll customers in some program and collect their money, but they have no intention of providing adequate tax assistance. In many situations, they do not even work with the IRS, so no debt is resolved. They even leave people worse off.
A Warning about Tax Relief Scams via the Telephone
The IRS rarely if ever calls taxpayers; almost ALL correspondence is done via the mail. The following list contains the only instances that an IRS agent calls or visits a taxpayer:
• A taxpayer has an overdue tax bill.
• To secure a delinquent tax return.
• To secure a delinquent employment tax payment.
The IRS does not:
• Call to demand payment.
• Initiate contact via email, text or social media.
• Ask for payment on a tax bill via one of these options
• Threaten to call the police, immigration officers or other people to arrest a taxpayer.
• Call to revoke a taxpayer’s driver’s license, business license or immigration status.