May 11, 2023
Although tax season has passed, you may still need to deal with tax issues. According to the Federal Trade Commission, tax relief companies might claim to be able to help, but they often leave you even further in debt with no help.
Some tax relief companies claim they can lower or eliminate your tax debts and stop the collection of back taxes. You can enlist their help if you pay them first. The problem is that if you pay, you may end up in debt without the promised tax relief. These scammers advertise programs that most taxpayers might not qualify for. Most of the time, these companies do not settle your tax debt, according to the FTC.
So, what are your options? You can work out a payment plan directly with the IRS for federal taxes or the state taxation department.
Protect yourself by:
- Not believing promises that you are eligible for a tax relief program. Only federal and state tax officials can determine your eligibility.
- Never doing business with anyone who wants to get paid in full upfront.
- Keeping away from companies that charge you monthly maintenance fees. Often these companies will promise you a quick resolution and that you’ll only pay for a few months.
- Avoiding companies that guarantee a particular result, as everyone’s situation is unique.
For more information, visit the FTC at bit.ly/ftcbacktaxes.
