You must ignore advertising hypes that reaches you through phone calls and emails to avoid falling prey to any tax relieving companies. They may promise to waive off your tax debts. IRS has schemes to help you pay back your tax debts either by reducing debt amounts or waiving off interests and penalties. You cannot avoid paying off your entire unpaid tax amount.
Definitely, it is a false promise to earn money from you. These firms charge you huge amount of money with a promise of positive debt tax consequences. But they will run away without solving your problem. They may also worsen your situation by recommending illegal actions that may be considered as tax scams.
Here are a few tips that can help you avoid IRS debt relief scams.
1. Check BBB rating
Before you hire any tax relief firm, check their authenticity and service ratings with the Better Business Bureau (BBB). You may also consult your friends and family members to find a reputed tax debt relief firm.
2. Guarantees tax debt relief
To reduce your tax debt burdens, the IRS allow you to pay less tax than you owe through various relief plans. Anyone can file a request to claim tax debt relief but everyone cannot get IRS approval or acceptance for debt relief. It entirely depends upon your documents and IRS decision. Hence, you must avoid tax firm that guarantees a specific outcome or acceptance for IRS tax relief program, interests or penalties.
3. Full upfront payment
If you call a tax relief firm and they ask for full upfront payment, credit card details, or banking information, you must avoid such firms. A reputed firm will first address your problems to sign the work agreement. Some firms may ask to pay a part of their fee. A genuine firm will first analyze all your financial statements.