A cry for help: Like most taxpayers in the United States, you probably have problems with the IRS. Whether you owe $10,000 or $1,000,000 in back taxes, there are hundreds of companies on the market just waiting to take more of your money. It sounds scary, but unfortunately we live in a world where some companies are just looking to rip you off. So how can you prevent this from happening?
Know your enemy: Before you avoid a fake tax company, you need to know what you’re looking for. Here are just a few of the things you may flag as red flags:
· “Cents on the Dollar” If any company tells you that you can settle your debt for pennies on the dollar… run. They are talking about the Offer in Compromise program and very few people qualify for the program. These companies will take your money before they even show you if or how you qualify.
· Advance Fees: A retainer fee is a way to “retain” the services of a business or tax professional. This basically means an unlimited amount of fees. They will charge you an initial payment to retain services and then continue to charge you while they “work” on your case.
· Credit card information: Nowadays, we all know how important our identities are. If one of these companies asks for your credit card information over the phone, end the call. That is a high pressure sales tactic and should be avoided at all costs.
How to avoid it: The best way to avoid being scammed is to know what to look for. You already have some red flags, so now you can know the bad things. But how do you know the good things? You can always check a company’s background with the Better Business Bureau (BBB) or Dun and Bradstreet. You can also check with your State Attorney General and your local Chamber of Commerce.
Now you are ready: It may seem simple, but many people don’t know the difference between bad actors and good companies. By following the steps above, you can be sure that when you decide on a tax resolution company, you can avoid being scammed.
Now you have the smoking gun… Use it!
