Tax Relief Company – are tax relief companies legitimate or a scam?
Beware of tax relief company that promise they can easily lower or completely eliminate your tax debt. It is usually a scam, especially when they demand the entire payment up-front. These types of companies have no legal or negotiation expertise and no professional background or knowledge about the complex tax laws that is so essential in aiding a taxpayer with IRS tax debt or tax problems. Tax relief companies essentially prey on the down-and-out taxpayer who feels he or she has nowhere to turn.
The reason for the increasing incidence in tax relief scams is due to the IRS stepping up its much heavier pursuit of back taxes owed by taxpayers due to the U.S. financial crisis. Look out for the most common tax scams by tax relief companies (heavily advertised on t.v., radio programs and the internet) promising to settle your tax debt for “pennies on the dollar.”
So, how do they find you? Looking to prey on the desperate, these scammers find out which taxpayers have been issued IRS tax lien notices, then call them up and offer fraudulent tax resolution services to reduce or eliminate their tax debt. Here’s the sad truth: they take your money, usually up-front with no accountability and no tax resolution services and leave you owing more taxes, penalties and interest than you did before. And according to IRS reports, these tax scams often deplete a taxpayer’s life savings.
These types of companies often charge high fees in the thousands without any significant or professional service. Their ploy is to request the same types of documents again and again from the client and then come to the conclusion that they no longer qualify for their services or that the IRS rejected their negotiations. Even worse, the tax relief company may just disappear…with your money.
Another type of tax-relief scam is the case where a taxpayer receives a letter from what looks like a government entity, claiming you qualify for tax relief. Do not be fooled…this is not legitimate. It is from a scammer hoping to get you to fork up money with the fraudulent intent of trying to help you settle your tax debt. Watch out for these type of tax relief companies.
Don’t become a victim. If you owe the IRS significant amounts of money and feel you cannot handle situation on your own, work directly with an experienced and reliable tax attorney. If negotiated and handled properly, you could be eligible for a monthly payment plan or an offer in compromise allowing you to settle your tax debt for less than you owe.
It is very important to remember also…the last thing you want to do is hide from the IRS and ignore notices from the IRS. Always respond to every notice. If ignored, the IRS will only pursue you more aggressively by quickly attaching tax liens on your assets and garnishing your income. The best way to avoid the fraud by a tax relief company is hiring a San Diego tax attorney well-versed in negotiating with the IRS to aid you in whatever IRS tax problem you may be experiencing.
Find a tax attorney in San Diego experienced with IRS tax settlement who can negotiate before the IRS on your behalf. The sooner you deal with the IRS, the easier it will be to resolve your case. The San Diego Tax Attorneys at Delia Law have many years of IRS experience and will aggressively represent you before the IRS. Please call for a no-cost tax attorney consultation at (619) 639-3336. We look forward to helping you.
This blog post is not intended as legal advice and should be considered general information only.