Receiving a call for anything related to taxes can be stressful. You may wonder whether you made a mistake during filing or owe a significant bill. In reality, if you are receiving calls from tax relief services, they may be trying to scam you.
Understanding the nature of these calls and how to respond is essential to protecting yourself against scams and warning those around you.
Understanding the Tax Relief Scam
The tax relief scam starts with a company calling you and offering to help resolve your back tax debt. This debt may or may not be legitimate. For example, you may know you owe taxes, or the company may (falsely) inform you that you are behind on them.
These companies charge high upfront fees with promises to resolve your debt. After they receive your money, they may either:
- Cut contact with you
- Attempt to resolve your debt without success
- State that the IRS has rejected their efforts to relieve your debt
- Successfully relieve a small amount of debt for you, but not enough to make the upfront fee worthwhile
In any case, you pay for a service you never receive. When you attempt to request a refund, the organization will never provide it.
How To Spot Tax Relief Scam Calls
Knowing how to spot these fraudulent services can help you avoid falling victim to their scams. While some scams may be obvious, others are very well disguised. Scammers often prey on your fear of serious fees or even jail time, convincing you to trust them by promising to help you avoid potentially harsh consequences.
When you understand how to properly evaluate a scammer’s claims, you can determine whether they are legitimate at the moment. These tips can help you spot tax and IRS scams:
- Ask for the name of the company and Google it. See what others have said about the company online.
- If the person claims to be calling from the IRS, don’t call the number they provide. Instead, hang up and Google the IRS’s taxpayer support phone number (800-829-1040, as listed on the IRS website). Call this number directly to speak with a legitimate agent about the scammer’s claims.
- Avoid giving any payment in advance. The scammer may pressure you to pay now, but no tax relief service is that time-sensitive. You can at least take a few days to research the company and decide what to do.
- Take note of any companies claiming that you are “eligible” or “qualify” for tax debt relief. Only the IRS can determine your eligibility for such programs.
- Beware of companies that make outlandish claims about being able to provide debt settlement immediately. Lofty claims are often unfounded.
Are Calls From Tax Relief Services Ever Legitimate?
Some tax relief companies may be legitimate. These companies could help you apply for IRS tax resolution programs. You can also work with CPAs and other professionals to determine how to proceed if you owe back taxes.
However, the majority of tax relief companies are not trustworthy, and you should steer clear of them. You should especially be wary of companies that call you to inform you about their services rather than you discovering them on your own.
Call Levy & Associates for Tax Assistance
If you are receiving robocalls from tax relief services, take their claims with a grain of salt. Our professionals at Levy & Associates provide legitimate tax resolution, audit defense, and accounting services. Call us today at 877-620-6490 or fill out our online form to learn how we can help solve your tax problems.