How to Avoid Tax Relief Scams

Navigating Tax Relief: How to Avoid Scams and Find Legitimate IRS Solutions

The tax relief industry often targets distressed taxpayers, particularly those facing IRS debt, with promises of reducing or even eliminating their tax burdens through IRS hardship programs. These companies frequently advertise their services as a lifeline to struggling taxpayers, typically charging thousands of dollars upfront. However, it’s important to be aware that many tax relief companies do not deliver on their promises.

In reality, a significant number of these companies fail to resolve their clients’ tax issues and often neglect to submit the necessary paperwork to the IRS to qualify for the programs they promote.

Even worse, many tax relief companies do not offer refunds, leaving clients even deeper in debt. Complaints filed with the Federal Trade Commission (FTC) reveal that some companies have engaged in unethical practices, such as unauthorized charges to clients’ credit cards and unauthorized withdrawals from their bank accounts. This behavior not only exacerbates the financial hardship of already distressed taxpayers but also undermines trust in the tax relief industry.

Choosing to work with such companies can be a risky decision. If you owe taxes but are unable to pay the IRS in full, it’s crucial to explore legitimate tax relief options directly through the IRS rather than risking further financial strain. The IRS offers several authentic relief programs under its Fresh Start initiative that are designed to help taxpayers manage their debts without the pitfalls associated with third-party companies. Here are a few options worth considering:

1. Installment Agreement Request
   An Installment Agreement is a practical solution for individuals who cannot pay their tax debt in a lump sum. This program allows taxpayers to pay their debt over time through manageable monthly installments. The IRS has made these agreements more accessible by raising the threshold for streamlined installment agreements from $25,000 to $50,000 and extending the maximum repayment term from five years to six. This adjustment provides more breathing room for taxpayers to meet their obligations without overwhelming financial pressure.
2. Offer in Compromise (OIC)
   Another viable option is an Offer in Compromise (OIC), which allows eligible taxpayers to settle their tax debt for less than the full amount owed. This program is intended for those who can demonstrate that they cannot pay their tax liability in full. The OIC is a powerful tool, especially under the expanded guidelines of the Fresh Start initiative, which broadened eligibility to include more struggling taxpayers. However, the IRS will not accept an offer if it believes that the taxpayer can pay the debt in full through other means, such as a lump sum payment or an installment agreement.
3. Other Fresh Start Programs
   The IRS Fresh Start initiative has introduced other provisions to assist taxpayers, including more flexible guidelines for lien withdrawals and revised penalty calculations that reduce the burden on those who have fallen behind. These adjustments are designed to provide relief and encourage compliance by making it easier for taxpayers to manage and pay off their debts.

Navigating these options can be daunting, and dealing with the IRS directly can add to the stress. However, it’s important to know that you have options and that you do not need to go through this process alone. The CKH Group is here to help you make sense of your tax relief options and guide you through the necessary steps to resolve your tax issues with confidence. Our team of tax experts is dedicated to helping you find the best solution for your unique situation.

If you’re feeling overwhelmed by your tax debt, don’t risk falling victim to disreputable tax relief companies. Instead, reach out to CKH Group for trusted advice and guidance. Book a free consultation with us today, and let one of our friendly tax professionals help you navigate the IRS’s legitimate tax relief programs, ensuring that you get the assistance you need without the stress and uncertainty of going it alone.

You can also contact us at 1-770-495-9077 or email us at info@ckhgroup.com

The above article only intends to provide general financial information and is based on open source facts, it is not designed to provide specific advice or recommendations for any individual. It does not give personal tax, financial, or other business and professional advice. Before taking any form of action, you should consult a financial professional who understands your particular situation. CKH Group will not be held liable for any harm / errors / claims arising from the articles. Whilst every effort has been taken to ensure the accuracy of the contents we will not be held accountable for any changes that are beyond our control.