When taxpayers contact a tax resolution company, they expect immediate and honest help. Unfortunately, there are companies that take advantage of their vulnerability knowing that they are in a financial crisis and desperate for help. Many taxpayers that come to Tax Defense Network share similar complaints about scam firms. Tax Defense Network was told about the various ways scam tax companies dupe taxpayers; some of them are shared below.
Tax Defense Network: Complaints about Scam Tax Companies
Many taxpayers shared stories about how fraudulent tax companies, including TaxMasters, Roni Deutch, and American Tax Relief, made them falsely believe that they could reduce their tax debt drastically. Hoping to get a substantial reduction to their back taxes, taxpayers hired them only to find that the companies made little to no effort to resolve their tax debt problem. Instead, they charged taxpayers bloated upfront fees and regularly kept charging them for services that were never provided.
Many scam tax companies use the phrase “pennies on the dollar” for an IRS tax debt reduction plan, called an Offer in Compromise, to attract taxpayers into hiring their services. Surprisingly, they promise a tax debt reduction to any taxpayer who would hire them. No wonder such scam companies received thousands of consumer complaints. Legitimate services such as Tax Defense Network, on the other hand, inform taxpayers before they hire their services that without first studying their case, they cannot guarantee a substantial tax debt reduction.
Tax Defense Network: Complaints about Scare Tactics
Taxpayers also shared complaints with Tax Defense Network about how scam companies misled them into thinking that the IRS is going to use aggressive collection actions against them. The scammers used scare tactics to get their clients to keep paying them more fees because most taxpayers do not know the IRS’ policies, and they believed what the scam companies told them. It is only after their case was not resolved that they ultimately discontinued the services, but they had already lost thousands of dollars to the scammers.
Tax Defense Network: Verification Complaints
Tax Defense Network, after hearing complaints by taxpayers, has been advising them to verify the qualifications of the staff, background of the company, and the number of consumer complaints against a company before hiring their service. Scam companies use marketing professionals instead of tax lawyers and tax experts for consultations. They try to sell their services to taxpayers at any cost. Because they indulge in malpractices, they discourage taxpayers to inquire about their staff.
Complaints that Tax Defense Network have been hearing from former clients of scam companies are shared with other taxpayers so they can avoid hiring such companies. Taxpayers must also know that honest companies always give realistic expectations to their customers based on facts. Tax Defense hopes knowledge about the malpractices of fraudulent tax companies will help taxpayers avoid falling into their trap.