Understanding Tax Relief Services and Scams
For many, tax season is a stressful time of the year. As such, a lot of taxpayers will go to tax relief services to relieve some of their stress, particularly those who owe tax money to the IRS or the government. However, some of these services could be a scam, so it is incredibly important to do thorough research before paying a tax relief service for their assistance.
What Are Tax Relief Services?
Those who work in tax relief services essentially help people with tax problems or people who owe tax money. These people could be certified public accountants (CPAs), attorneys, or enrolled agents. These are professionals that could represent taxpayers in meetings with Internal Revenue Service (IRS) or a hearing that has to do with taxes.
These professionals are also usually employed by recognized tax relief services.
What Kind of Services Are Offered?
Tax relief services as well as tax settlements companies can help the taxpayer lower or discard any debt they have to the IRS. These services and companies can also help halt property seizures, levies, or wage garnishments that could have been on its way to the tax payer.
Taxpayers usually pay about the same amount of money as they would’ve paid the IRS to tax relief services. However, sometimes tax relief services can save some of the tax payer’s money.
How to Tell Whether or Not the Tax Relief Service is a Scam
Although every tax payer tries not to fall for scams, sometimes even those who do thorough research fall privy to tax relief service scams. If a tax relief service does the things listed below, there is a big chance that it could be a scam.
- The tax relief service asks you to pay a large fee upfront, promising you that your liability will be cancelled or largely reduced after the payment.
- The employees at the tax relief service uses high-pressure sales tactics.
- The tax relief service says results are guaranteed.
- Consultation is always done online or on the phone, rather than in person.
- Little to no details are given to the tax payer during the “free consultation” until a fee is paid upfront.
- Asks for tax payers to pay the fees with prepaid debit cards or through wire transfers.
What to Do If You’ve Fallen for a Tax Relief Service Scam
Ta payers who are victims of tax relief service scams may feel helpless and upset – especially if they still have tax debt. Although one may feel as if they’ve lost a large sum of money, there are some actions one can take to try and save what’s been lost.
Here are some steps a tax payer should take if they feel that they’ve been scammed by a tax relief service:
- Report the scam to a local law enforcement agency
- If the scam company charged the fees on a debit or credit card, call the bank as soon as can to cancel the transfer or the debit/credit card.
- File a complaint to the Federal Trade Commission or to the IRS. It may be easier to contact the IRS since tax payers will still have to pay their taxes through them anyways.
Featured Image: Depositphotos/© megaflopp
