Are tax relief companies legitimate?

There are several red flags that should warn any prospective customers considering hiring a tax settlement firm. Any firm that promises a drastic reduction of a customer’s taxes without first getting a detailed financial background on that person is likely going to end up being a scam.

Why are tax relief companies calling me?

These Tax Relief Scams typically begins with deceptive advertisements claiming to reduce a taxpayer’s tax liability for pennies-on-the-dollar and by settling with the IRS for a fraction of what a taxpayer owes. These false promises continue once a taxpayer visits the company’s website or makes a call to the company.

What is the number one tax relief company?

#1 Community Tax. Community Tax is our top choice for the best tax relief company of 2021. With an impressive A+ BBB rating, transparent pricing, and hundreds of 5-star reviews, Community Tax is one of the most reputable tax relief companies in the industry.

How can I get my tax debt forgiven?

Apply With the New Form 656 An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.

Is being scammed tax deductible 2020?

If you can show that the scam constitutes a theft under state law, then the loss becomes deductible as an ordinary loss. Investors who fall victim to fraudulent investment schemes but who may be able to recover some of their losses can use a safe harbor rule to take an immediate tax write off.

How much does Optima tax relief charge?

How Much Does Optima Tax Relief Cost? The cost range for the tax relief portion of Optima’s services is going to run between $2,000 and $5,000 depending on your specific needs. The initial fee for the investigation phase will be $495.00. You’ll have to pay this in full before Optima will take your case.

Can the IRS forgive debt?

It is rare for the IRS to ever fully forgive tax debt, but acceptance into a forgiveness plan helps you avoid the expensive, credit-wrecking penalties that go along with owing tax debt. Your debt may be fully forgiven if you can prove hardship that qualifies you for Currently Non Collectible status.

What is an IRS scam email?

Scam emails are designed to trick taxpayers into thinking these are official communications from the IRS or others in the tax industry, including tax software companies. These phishing schemes may seek information related to refunds, filing status, confirming personal information, ordering transcripts and verifying PIN information.

Do tax relief companies really help with back taxes?

Tax relief companies use the radio, television and the internet to advertise help for taxpayers in distress. If you pay them an upfront fee, which can be thousands of dollars, these companies claim they can reduce or even eliminate your tax debts and stop back-tax collection by applying for legitimate IRS hardship programs.

Are tax-debt-relief companies legit?

While there may be legitimate tax-debt-relief companies, there are also plenty of scammers. The Federal Trade Commission says that a company demanding payment before doing anything for you is a sign of a scam.

Are there any tax scams and consumer alerts for taxes?

Tax Scams/Consumer Alerts. Thousands of people have lost millions of dollars and their personal information to tax scams. Scammers use the regular mail, telephone, or email to set up individuals, businesses, payroll and tax professionals.