From dieting to debt, it’s only natural to seek the easiest and most pain-free solution possible. In both situations, however, easy is rarely effective.
Unfortunately, scammers in multiple industries prey on the desperate in hopes of making a quick buck — and tax resolution is no exception. With a little awareness, you can avoid the devastating scams and problematic ‘solutions’ outlined below:
Promises of Immediate Tax Relief
Beware phone calls from alleged tax relief companies promising to immediately wipe out all debt. While reputable tax services exist, few can realistically promise such quick fixes.
Tax relief scams are more common — and more devastating — than most people realize. In 2017, for example, the Federal Trade Commission and the State of Florida put a stop to a massive debt relief scam that targeted cash-strapped victims with promises of debt dismissal.
Pennies on the Dollar Guarantees
Offers in compromise sometimes make it possible to settle tax for less than you owe. Few OICs, however, will allow you to settle your tax debt for ‘pennies on the dollar,’ as fraudulent resolution services may claim. After all, OIC acceptance rates are notoriously low — and the IRS automatically corrects offers deemed insufficient. Your tax resolution provider should be honest and upfront about your prospects.
Tax Debt Loans
Some lenders specifically target consumers struggling with tax debt, despite recognizing the availability of offers in compromise, installment plans, and other viable solutions. While loans promise temporary relief, they ultimately pile on the debt, leading to further financial issues down the road. Worse, these loans typically involve exorbitant interest rates and late fees that can be difficult for already debt-laden consumers to overcome.
Sadly, magic IRS debt solutions do not exist. With assistance from the Highland Tax Group, however, you can successfully navigate difficult tax situations. Contact us to learn more about our approach to tax resolution.