Tax Debt Relief Scams

Watch Out for Tax Debt Relief Scams

Dealing with tax debt can be extremely stressful. The letters from the IRS, the threatening calls, the penalties and interest piling up – it’s enough to make anyone feel anxious and overwhelmed. In these situations, it’s tempting to jump at any solution that promises to make the problem go away. However, consumers need to be very cautious of predatory companies claiming they can settle tax debts for pennies on the dollar. Many of these “tax debt relief” firms use deceptive tactics and false promises to take advantage of vulnerable people.

I want to have an honest conversation with you about tax debt relief scams, what to watch out for, and your better options. As someone whose been through this myself, I know how scary and confusing it can be. I hope this article can help you avoid getting ripped off during a difficult time.

How Tax Debt Relief Scams Work

Here’s how these predatory schemes often work:

• The company advertises on TV, radio, or online promising they can eliminate or drastically reduce your tax debt.
• They pressure you to pay an upfront fee, usually several thousand dollars.
• After taking your money, they either stop responding or continuously ask you for more information/documents.
• Eventually, they’ll claim you no longer qualify for the promised tax relief or that the IRS rejected their proposal.
• The company keeps your upfront fee and leaves you in an even worse financial position.

Many of these “tax experts” are nothing more than salespeople working on commission. They’ll say anything to get your business, even if it’s a complete fabrication. Their goal is to extract as much cash from you as possible, not actually help resolve your situation.

Warning Signs of a Tax Debt Relief Scam

Here are some red flags to watch out for:

• They promise to settle your tax debt for “pennies on the dollar” without reviewing your financial situation.
• They ask for a large upfront fee before providing any services.
• They claim you “qualify” for tax relief programs you’ve never heard of.
• They refuse to provide a detailed contract of services or have a vague refund policy.
• You can’t find any background information on the company or complaints filed with the BBB.
• They send unsolicited letters/emails claiming you’re eligible for tax debt assistance.

Legitimate tax professionals will never guarantee results without thoroughly reviewing your personal financial situation first. Be very skeptical of any company that promises immediate relief from IRS collections or penalties.

Your Better Options for Tax Debt Relief

If you owe back taxes, you have much better options than paying a sketchy “tax relief” company thousands of dollars upfront. Here are some legitimate ways to resolve tax debt:

Christine Twomey

2024-03-21

Just had my Divorce case settled 2 months ago after having a horrible experience with another firm. I couldn’t be happier with Claire Banks and Elizabeth Garvey with their outstanding professionalism in doing so with Spodek Law Group. Any time I needed questions answered they were always prompt in doing so with all my uncertainties after 30 yrs of marriage.I feel from the bottom of my heart you will NOT be disappointed with either one. Thanks a million.

Brendan huisman

2024-03-18

Alex Zhik contacted me almost immediately when I reached out to Spodek for a consultation and was able to effectively communicate the path forward/consequences of my legal issue. I immediately agreed to hire Alex for his services and did not regret my choice. He was able to cover my case in court (with 1 day notice) and not only was he able to push my case down, he carefully negotiated a dismissal of the charge altogether. I highly recommend Spodek, and more specifically, Alex Zhik for all of your legal issues. Thanks guys!

Guerline Menard

2024-03-18

Thanks again Spodek law firm, particularly Esq Claire Banks who stood right there with us up to the finish line. Attached photos taken right outside of the court building and the smile on our faces represented victory, a breath of fresh air and satisfaction. We are very happy that this is over and we can move on with our lives. Thanks Spodek law 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️

Keisha Parris

2024-03-15

Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.

Taïko Beauty

2024-03-15

I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence. Thank you team!

Anthony Williams

2024-03-12

Hey, how you guys doing? Good afternoon my name is Anthony Williams I just want to give a great shout out to the team of. Spodek law group. It is such a honor to use them and to use their assistance through this whole case from start to finish. They did everything that they said they was gonna do and if it ever comes down to it, if I ever have to use them again, hands-down they will be the first law office at the top of my list, thank you guys so much. It was a pleasure having you guys by my side so if you guys ever need them, do not hesitate to pick up the phone and give them a call.

Loveth Okpedo

2024-03-12

Very professional, very transparent, over all a great experience

Bee L

2024-02-28

Amazing experience with Spodek! Very professional lawyers who take your case seriously. They treated me with respect, were always available, and answered any and all questions. They were able to help me very successfully and removed a huge stress. Highly recommend.

divesh patel

2024-02-24

I can't recommend Alex Zhik and Spodek Law Firm highly enough for their exceptional legal representation and personal mentorship. From the moment I engaged their services in October 2022, Alex took the time to understand my case thoroughly and provided guidance every step of the way. Alex's dedication to my case went above and beyond my expectations. His expertise, attention to detail, and commitment to achieving the best possible outcome were evident throughout the entire process. He took the time to mentor me, ensuring I understood the legal complexities involved to make informed decisions. Alex is the kind of guy you would want to have a beer with and has made a meaningful impact on me. I also want to acknowledge Todd Spodek, the leader of the firm, who played a crucial role in my case. His leadership and support bolstered the efforts of Alex, and his involvement highlighted the firm's commitment to excellence. Thanks to Alex Zhik and Todd Spodek, I achieved the outcome I desired, and I am incredibly grateful for their professionalism, expertise, and genuine care. If you're in need of legal representation, look no further than this outstanding team.

Load more

Google rating score: 4.9 of 5, based on 736 reviews

• Work directly with the IRS – The IRS has flexible payment plans and settlement programs you may qualify for. Calling them directly is the best first step.
• Non-profit credit counseling – Reputable non-profits can help you manage tax debt for much lower fees.
• Hire a tax attorney – An experienced tax attorney can negotiate with the IRS on your behalf and provide legal protections.
• Bankruptcy – As a last resort, filing Chapter 7 or 13 bankruptcy may discharge income tax debt.

I recommend starting by contacting the IRS directly to see if you’re eligible for any of their payment plans or settlement offers, such as an Offer in Compromise. The IRS looks more favorably on taxpayers who proactively try to resolve debt rather than avoiding it. Calling them directly is free and the best first option.

If you need additional help, hire a local tax attorney, CPA, or non-profit credit counseling agency. Legitimate professionals will review your situation thoroughly before making any recommendations. Make sure to ask about their fees and services upfront so there are no surprises down the road.

How to Report a Tax Debt Relief Scam

If you believe a tax debt relief company has scammed you, it’s important to report them right away. Here are the steps to take:

1. Contact your state attorney general’s office and file a complaint.
2. Report the company to the IRS Tax Fraud Hotline at 1-800-829-0433.
3. File a complaint with the Federal Trade Commission at FTC.gov.
4. Leave online reviews warning others about your experience.
5. Consult a lawyer about recovering lost fees.

The more complaints these shady operators receive from consumers and regulators, the higher likelihood they will be penalized or shut down. Consider pursuing legal action to recover any fees you already paid the company.

My Story of Getting Scammed

I want to share my own experience getting duped by a tax debt relief scam when I was struggling with IRS debt. At the time, I was in a tough financial spot and felt totally lost about how to handle thousands of dollars of back taxes I owed. So when I heard a radio ad promising to get my tax debt forgiven, it sounded too good to be true.

Of course, I now know if something sounds too good to be true – it usually is. But I was desperate and made an emotional decision to go with this company called Tax Debt Solutions. Big mistake.

After an initial sales call where they made big promises about slashing my debt, I paid their $2,500 fee. But as soon as they got my money, everything changed. They stopped returning my calls and emails. After 6 months of being strung along, they claimed I no longer qualified for their debt program. Even though I begged for a refund, they refused and kept the $2,500.

I eventually found out Tax Debt Solutions was not even a real company. They had scammed me and who knows how many other vulnerable people struggling with IRS debt. I reported them to the state attorney general, but the company disappeared. And I never recovered the fee I paid.

I share this story to help others avoid the same mistake I made. I should have spoken to the IRS first or hired a legitimate tax professional to help me. Please don’t wait to get real help. The longer tax debt goes unaddressed, the more penalties and interest will accrue. Wishing you all the best in getting back on track with the IRS.

– Alex Johnson

The Bottom Line

Dealing with tax debt is difficult enough without predatory companies taking advantage and making it worse. Arm yourself with information so you can avoid tax relief scams. Remember – contact the IRS first yourself, use reputable non-profits second, and only hire local tax professionals that come highly reviewed. Don’t become another victim. You’ve got this!