The Truth About Tax Relief Scams and How to Avoid Them

Holicent

VIP Contributor
Unfortunately, tax relief scams are common, so it's important to be aware of them to avoid being taken advantage of. Tax relief con artists and how to avoid them are as follows:

  • The IRS does not initiate communication via email or phone. Swindlers frequently impersonate IRS agents and employ scare tactics to coerce victims into paying money they do not owe. Before calling or emailing you, the IRS will always send you a notice by mail.
  • Most of the time, promises of quick and simple tax relief are too good to be true. In reality, the process is complicated and takes a long time, despite the fact that many tax relief scams promise to pay off your debt for pennies on the dollar.
  • You will never be asked to pay any upfront fees by legitimate tax relief companies. Swindlers frequently demand hefty upfront payments before making off with your money. Only after they have provided you with services and settled your tax debt do legitimate tax relief companies charge fees.
  • Swindlers frequently employ high-stakes tactics to compel you to act quickly. It's a red flag if they tell you that you have a limited time to use their services. Before agreeing to work with a tax relief company, take your time researching them.
  • The IRS provides free assistance with tax issues. To pay off your tax debt, you don't need to pay a tax relief company. To assist you with your tax debt, the IRS provides free resources like installment agreements, conciliation offers, and hardship relief.
Be careful and do your homework to steer clear of tax relief scams. Before agreeing to work with a tax relief company, do your research and keep in mind that anything that sounds too good to be true probably is. Contact the IRS or a reputable tax professional for guidance if you are unsure about a tax relief company.
 
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