Relief from tax relief

The FTC is mailing refund checks totaling more than $16 million to 18,571 people who paid American Tax Relief, a company that claimed it could reduce their tax debts. Under the settlement, the defendants turned over millions of dollars in assets, and are banned from telemarketing and selling debt relief services.

If you owe back taxes, you may be tempted to pay a fee of hundreds or thousands of dollars to companies that claim they can reduce or eliminate your tax debts. Unfortunately, these companies often leave people even further in debt. If you’re having trouble meeting your tax obligation:

  • read your notices from the IRS or your state comptroller. Ask them about collection alternatives.
  • ignore promises from any company that says you are "qualified" or "eligible" for a tax relief program to resolve your tax debt. Only the IRS or your state comptroller can make that determination.
  • walk away if a company requires a fee in advance for tax relief services.

If you believe you’ve lost money to a tax relief scam, file a complaint with the FTC.

Tagged with: debt, scam, tax
Blog Topics: 
Money & Credit

Comments

FairTax would solve this problem

If you're talking about the "National Sales Tax", maybe, but I can imagine the new ones it would create.

What's a fair tax? Details?

Is this the only amount we will be able to recover? Our payment to them was over $5,000.00 which we are still paying on we have tried to have the debt removed from our credit card since it was a fraudulent debt, but the credit card company has failed to remove it even after being advised it was fraudulent charge.....

Wow I hate people that scam I'll be very carful

please believe ftc are not on the sides of consumers, the reason to believe clause, is a bunch of crap...they confiscate company property, and devide it amongst themselves , and family. Have you seen a roster or report where it goes??????!!!!!!

I am not sure if this is the right department, but I just received a all from the US Government Federal Grant department. the person (Mary Smiph) said I have been selected to receive a grant $7000 and it doesn't have to be paid back. She said I had to go to a CVS, Walgreen or Rite Aid to claim the money. She gave me a number to obtain the money. If this is a scam I want you to be aware of this.

Is this Melvin at 203-701-1071 who claims to be with the IRS Tax Audit Dept?

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