Watch Out! The Top 3 Tax Relief Scams
You’ve seen the ads: “We solve your tax problems for pennies on the dollar!” “We are the only tax resolution firm with ex-IRS Agents!” “No one else knows about this limited IRS program, so call us today!” As the saying goes, if it sounds too good to be true, it probably is. As for actual former IRS Agents, we’re familiar with many tax relief scams. Here are three of the top scams to watch out for.
Misrepresenting Potential Outcomes
This scam typically begins with deceptive advertisements claiming to reduce a taxpayer’s tax liability for next to nothing and settling with the IRS for a fraction of what a taxpayer owes. They often make grandiose claims of settlements and urge listeners to call right away to prevent missing out on a supposed time-sensitive opportunity for tax relief. These false promises continue once a taxpayer visits the company’s website or makes a call to the company.
Most of these unscrupulous tax relief companies have numerous salespeople that handle all incoming calls. They aren’t licensed tax professionals, and their only goal is to determine how much you owe and convince you they can substantially reduce your debt. All to securing a non-refundable deposit via your credit card, bank number, or personal check. Once you sign up via a contract, they continue to charge you and take little or no favorable case actions.
Scam Taxpayers, Change the Name, Repeat
What happens when scam victims and State Attorneys General start to catch on to these companies? Once the tax relief firm starts to have issues with its deceptive business practices, it forms a new corporation, gets a new name, and goes back to the same unethical and illegal practices.
Learn more about these and other scams to watch out for — as well as how to protect yourself here!