The tax season often brings a surge in scam calls, with many posing as the IRS or offering fraudulent tax services. This year, a prevalent scam involves calls offering tax debt relief. Understanding how these scams operate and recognizing the red flags can protect you from becoming a victim.
Deceptive Practices of Tax Debt Relief Scams
These scams typically begin with a pre-recorded message claiming to offer tax debt relief services. The message urges you to call back a provided number, connecting you with a live agent. This agent will likely charge an upfront fee for pre-qualification, falsely declare you eligible for relief, and then fail to file the necessary paperwork with the IRS.
Recognizing Red Flags in Tax Debt Relief Calls
Several warning signs can help you identify these fraudulent calls:
Unsolicited Offers of Relief:
Legitimate tax debt relief usually involves an extension on payment deadlines, not immediate forgiveness. Individuals seeking assistance typically initiate contact with relief programs themselves. Receiving unsolicited offers should raise immediate suspicion.
Outlandish Promises:
Scammers often make unrealistic promises, such as settling all or a significant portion of your debt quickly. While tempting for those struggling with debt, these claims are rarely true and should be viewed with extreme skepticism.
Overly Simplified Processes:
Obtaining legitimate tax debt relief requires a thorough process, including background and financial checks. Scammers often bypass these steps, claiming no background check is necessary. This lack of due diligence is a major red flag.
Evasive Refund Policies:
Inquiring about the company’s refund policy can expose a scam. Legitimate businesses have clear and transparent refund procedures. Evasive or non-existent policies are strong indicators of fraudulent operations.
Verifying Legitimate Tax Debt Relief Assistance
Resources like the Better Business Bureau (BBB) and the IRS guidelines on choosing tax professionals can help you verify the legitimacy of tax debt relief agencies. Always consult these resources before engaging with any unknown service provider.
Reporting and Blocking Tax Debt Relief Scam Calls
Avoid engaging with unknown numbers and report suspicious calls to your phone carrier. If you believe you’ve fallen victim to a scam, report it to local authorities, your state’s attorney general, and the Federal Trade Commission (FTC).
Utilizing call-blocking apps can also help prevent unwanted robocalls.
Remember, vigilance and a healthy dose of skepticism are your best defenses against tax debt relief scams. Always verify the legitimacy of any offer before providing personal or financial information.
