US Google searches for “debt relief scam” skyrocket by 809% over past 24 hours.
As struggling taxpayers are looking for ways to manage and relieve debt, financial professionals are warning Americans of debt relief scams.
A Tax Relief Professionals at Ideal Tax says,
“There are many scams out there that take advantage of unknowing people who are stressed about their tax issues, such as their credit card debt, trouble with mortgages, student loans, or filing for bankruptcy.
“A red flag to look out for when you research or Google which sites you should use to help is if they lack positive reviews. Additionally, if a company makes drastic claims about how much cash it can save you and fails to mention a disclaimer about the eligibility requirements for IRS tax relief, you should question the agency’s legitimacy.”
Why Should I Avoid Using Tax Debt Relief Companies?
The biggest risk of utilizing a tax debt relief company is not successfully resolving your IRS debt.
Instead of providing tax help, the wrong tax company can add insult to injury and make your tax problems worse, so it is important that clients know their rights and conduct thorough research when seeking professional help with the navigation of tax relief.
The cost of how much a tax relief company charges is also an important factor to consider.
Some tax debt relief companies charge a percentage of the total tax debt, such as 10% to 20%, whereas others charge a flat fee, such as $1,000, so it is beneficial to compare this statistic when choosing a tax relief company.
The IRS Fresh Start program aims to relieve debt collections for payments such as financial penalties and tax liens, often used by Federal Government to punish individuals or small businesses with outstanding tax debts.
However, there are certain requirements a person or business must have met to be eligible for taking advantage of the IRS Fresh Start program.
For those looking to enrol, Tax Relief Professionals at Ideal Tax highlight how the IRS Fresh Start Program works, the eligibility criteria and why people should avoid using tax debt relief companies.
Read more: How Does The IRS Program Work?
