Struggling with tax debt? Here’s what to know
Scammers pose as tax relief companies and promise to erase your back taxes for a fraction of what you owe, but they pocket fees and do nothing.
How it works
You contact or are contacted by a company claiming to offer tax relief. They promise to settle your tax debt for pennies on the dollar without reviewing your actual situation. They collect upfront service fees and then disappear or provide no real help, leaving you deeper in debt to tax authorities.
Red flags to watch for
- Company promises to eliminate or drastically reduce tax debt before reviewing your case
- They demand upfront fees before doing any work
- Guarantee of results that sound too good to be true
- Pressure to act quickly without letting you verify their credentials
- They don't explain how they will actually help you
What to do
Do not pay any company upfront to help with tax debt. Contact the IRS directly at 1-800-829-1040 or visit IRS.gov to learn about legitimate payment plans, offers in compromise, and hardship relief. If you need help, hire a licensed tax professional or attorney and verify their credentials independently.
If this reached you
Source: FTC . Scam Sentinel summarizes official guidance in plain language; it is a decision aid, not a guarantee.