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Tax Debt Resolution Scams and How to Spot Them

With Tax Day right around the corner, you might not realize that there are things you need to be wary about when it comes to your taxes.

So as not to have a miserable time of Tax Day (and afterward), we’re here to help you learn about some of the signs you need to keep an eye out for when it comes to scams surrounding tax debt resolutions.

Tax Debt Resolution: What Is It?

This is the process where you work with the IRS – typically alongside tax professionals as well – to try and find a solution to any tax problems you might be having. This can include having not paid taxes for many years or having discrepancies on your tax reports.

Whatever the issue is, you’ll work with the IRS and with tax professionals to come up with ways to fix your tax problems. The IRS will usually contact you to alert you if there’s an issue with your taxes, but keep in mind that it’s in your best interests to be aware if there might be a problem with your taxes.

How to Spot a Tax Debt Resolution Scam

Anything surrounding taxes is likely to feel somewhat stressful and extremely urgent. However, these are the sensations that are most likely to lead to you being susceptible to a scam.

Don’t Believe The Advertising

One of the best things you can do is not believe every bit of advertising that comes out in the lead-up to Tax Day. Although some of it will have some information that can help you with your taxes, many other advertisements are there to try and make you spend unnecessary money.

If you’re finding ads that are telling you that they’ll help with your tax debt resolution for nearly free… hate to break it to you, but that’s likely a scam. Tax debt resolution services shouldn’t require you to clean out your savings, but they should still cost you some money.

Do Research

If you get contacted by one of these tax debt resolution companies who claim they can help you – or if you find one on your own – don’t just jump into bed with them immediately. Research the company. Look into their success rate. Investigate how long they’ve been in business! Check on their past clients. All of these elements are bits of information that can help you determine if you’re in the process of being scammed or if a company is legitimate.

And when it comes to your search, don’t just choose the first link you find and consider your research done. You’re going to have to go into the trenches and sift through pages of research to ensure that you’re working with a reputable company.

It may seem like a lot of work, but it will save you money, stress, and credit score numbers if you do extensive research from the outset.

Other Signs to Consider

There are many elements out there that can help you determine if you’re working with a real company or with a company that is trying to scam you. Keep an eye out for the following things, as all of them are red flags that denote a company you should not work with:

  • If the company asks for any sort of payment before any work has been done.
  • If the company tells you that you’ll see an extreme and life-changing reduction in your taxes.
  • If the company does not ask you what has gotten you in trouble with the IRS in the first place.
  • If the company fails to look into the details of your financial history (which is necessary to help with your situation).

At the end of the day, if you feel as if there are any red flags, trust your gut. Don’t let yourself get scammed.

Tax Professionals Who Will Fight for You

Here at Guardian Tax Law, not only do we have years of experience under our belt, but we have thousands of happy customers who will vouch for our professional services. Rather than risk it all with the potential of running across a scam, trust us to handle your situation so that you don’t have to worry about getting yourself into trouble that might last for years on end.