How to Avoid Tax Resolution Company Scams

tax scam warning sign

Dealing with tax issues can be a stressful experience, especially if you are not sure where to turn for help. With so many options out there, it can be challenging to find a reputable tax resolution firm that can provide expert advice and reliable services. Unfortunately, there are many companies out there that prey on taxpayers’ vulnerability and make promises they can’t keep. Whether you’re dealing with back taxes, unfiled tax returns, wage garnishments, or any other tax problem, our guide will help you navigate the process. This way, you can steer clear of tax resolution company scams and choose a trustworthy specialist who can help you achieve permanent resolution.

Common Tax Resolution Company Scams to Avoid

  • Overpromising Results

The first scam to watch out for is when a tax resolution company guarantees specific results before conducting a thorough analysis of your case. For instance, they might promise to settle your tax debt for a specific amount through an offer in compromise. Or, they might assure you that you’ll only have to pay a certain monthly payment amount. A reputable firm will never make promises without first evaluating your case’s specifics. They should have an understanding of the possible outcomes based on their historical experience with similar cases.

  • Bait and Switch Tactic

The second tax resolution company scam involves the bait-and-switch tactic. Some firms may quote you low fees for a particular service to lure you in. But only to inform you of additional services needed and charge more to complete your case. A reputable tax resolution specialist will work on a fixed or flat fee basis. They will provide you with transparency upfront, ensuring that you know precisely what you’re paying for.

  • Salesperson vs. Licensed Professional

Only a licensed professional, such as a CPA, Enrolled Agent, or Attorney, can represent you before the IRS. Therefore, it’s essential to verify that the person you’re speaking to is a licensed professional and not a salesperson. You must ensure that they are qualified to assist with your situation. To avoid this issue, ask to speak with a licensed professional before hiring a tax resolution specialist.

  • Upfront Payment in Full

It’s a red flag when a firm requires you to pay the entire fee upfront. A reputable tax resolution specialist will typically require a reasonable deposit to start your case. Then, the rest should be paid overtime in fixed monthly payments that fit your budget.

How to Choose a Reputable Tax Resolution Specialist

Now that you know what to avoid when searching for a tax resolution specialist, let’s discuss what you should look for in a reliable and reputable company. Here are some tips to help you find the right tax resolution specialist for your needs:

1. Tap Your Network for Referrals

One of the best ways to find a reputable tax resolution specialist is to tap into your personal network and ask for referrals. Seeking recommendations from someone you personally know and trust can help ensure that you find the right tax professional who can handle your tax needs. This method can help you avoid risks associated with randomly selecting a tax service provider. If your network doesn’t have any suitable leads, conducting a web search can be an option, but it’s important to be cautious. 

2. Check Their Credentials

Ensure that the tax resolution specialist you are considering is a licensed CPA, Enrolled Agent, or Attorney. These professionals have the expertise and authority to represent you before the IRS. Also, check their track record and reviews to see if they have a history of successful resolutions for cases similar to yours.

3. Ask for a consultation

A reputable tax resolution specialist will offer a no-obligation confidential consultation to explain your options to resolve your tax problem. During this consultation, they should listen to your concerns, analyze your case, and provide an honest assessment of your options

4. Understand their fee structure

Look for a tax resolution specialist who offers a clear and transparent fee structure. They should provide you with a written agreement that outlines the services they will provide and the fees you will be charged. This agreement should also specify whether the fees are fixed or based on a percentage of the tax debt you owe.

5. Communication is key

Choose a tax resolution specialist who is easy to communicate with and has efficient communication systems in place. The process of resolving tax issues with the IRS can be slow. There may be significant gaps between updates from the IRS. However, this doesn’t mean that your tax relief firm should also be lacking in communication.

Before hiring a tax resolution specialist, it’s important to ask how long they estimate it will take to resolve your tax problem. Additionally, make sure to inquire about their communication protocols and how they plan to keep you updated. A reliable firm should have systems in place to provide you with consistent updates, ensuring that you are informed every step of the way and giving you peace of mind that your case is being handled properly.

We Find Solutions

Don’t let the complexities of tax resolution overwhelm you. Seeking the help of a reputable tax resolution specialist can alleviate your worries and help you get back on track with your finances.

If you’re currently struggling with tax resolution, don’t hesitate to reach out to our firm. We can provide expert advice and guidance from the tax resolution expert. We understand the complexities of the IRS maze and have a team of licensed professionals ready to assist you.

During a no-obligation and confidential consultation, we’ll take the time to understand your specific situation and provide you with tailored solutions. Our solutions may include negotiating an offer in compromise for a discounted settlement, requesting an appeal, reducing penalties, offering a monthly payment plan, filing delinquent tax returns, or representing you in an IRS audit or hearing. Contact us today to schedule your consultation and take the first step toward resolving your tax problem.

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