Tax relief companies heavily advertise on the television, radio and the internet attracting distressed and desperate taxpayers who owe back taxes to the Internal Revenue Service (IRS) and/or State Tax Agencies (State). If you have tax debt, you may be tempted to contact these tax relief companies for help. Many of these tax relief companies promise or guarantee that they will lower or eliminate your tax debt. These tax relief companies end up causing more problems for the taxpayers in the long run. For example, their tax debt is much higher or aggressive collection (i.e. bank levy, wage garnishment, etc.) began because too much time had passed since they initially hired these companies.
Government agencies like the Federal Trade Commission (FTC) got involved and tried to protect consumers by investigating complaints and suing companies and people who take advantage of distressed taxpayers. However, a new tax relief company forms every day making the same false promises. Do not become another victim of these tax relief companies.
The TRUTH behind most tax relief companies:
Truth: When you call these tax relief companies, most of the people you initially speak to are sales people. They are not licensed professionals. They know very little, if any, about tax law and procedures. Many of these tax relief companies hire sales people who are proven “closers” and who have extensive sales experience. Many do not even use their real name and give themselves a title like “senior tax consultant” or “senior tax advisor.”
Truth: The advertisements and statements of these tax relief companies focus on you hiring a TAX ATTORNEY because they know people want an attorney on their side. The tax professionals at these companies who are mainly working on your case are not attorneys. You may have 3-4 people working on your case, but none of them will be an attorney. There may be an attorney at the tax relief company but the chances are, an attorney will not be working on your case. And chances are, each time you speak to someone about your case, you will not be speaking with an attorney.
Truth: Lowering your tax debt is possible, but it is not a viable option for everyone. Negotiating with the IRS or State is a complicated process involving complex tax law and procedure. These tax relief companies falsely promise that you qualify for this type of settlement without thoroughly investigating your financial information and tax case.
Truth: Many tax relief companies arbitrarily decide the fees you pay them for their services based on how much you owe the IRS and/or State and your financial status. Any experienced Tax Attorney will tell you that just because you owe $100,000 to the IRS that does not mean resolution for your tax case is more difficult or complicated than someone who owes only $30,000. An experienced tax attorney will take into consideration all relevant factors and information of your case.
Truth: Once you are unhappy with these tax relief companies, your complaints about their services will most likely be dismissed and your requests for a refund will be denied. You will end up making a complaint with the Better Business Bureau (BBB), which the tax relief company may or may not respond to, or posting a complaint on an online consumer forum like “Ripoff Report” warning others about your experience. Once they have your money, your complaints about their services are not important anymore.
Truth: Tax relief companies and its “professionals” are not regulated like law firms and attorneys. The owners of these tax relief companies will close their company once there are a lot of complaints on the BBB and online consumer forums. Once their reputation is tarnished, they will open another tax relief company with a new name and victimize more innocent people.
Truth: Many tax relief companies will create fake company profiles with fake positive reviews. There are many online forums now where consumers can write reviews about their experiences and rate businesses, which can be very useful to the public. However, these tax companies will abuse these forums by having people they know write fake positive reviews.
Truth: Hiring a law firm whose attorneys have experience in tax controversy and tax law to assist you is the best way to resolve your tax debt issues with the IRS and State. When you contact a law firm you know that only an attorney will be working on your tax case.
