Consumers can fall victim to numerous financial scams. Unfortunately, there are always bad actors who are looking to take advantage of those who may not have the financial knowledge or experience to see a trick coming.
One common scam to watch out for relates to the tax relief industry. You may have heard of tax relief from television commercials and online ads as a way for you to reduce the amount of taxes you owe to the government.
Tax relief companies negotiate with the IRS and other taxing authorities on your behalf. The reputable companies draw on their expertise to try to reduce your tax debts and gain other measures of relief. If applicable, they file extensions, appeals and motions to stop wage garnishments, levies and liens. Some firms also assist with tax audits, tax preparation and compliance matters.
Unfortunately, the industry is also riddled with bad actors who prey on overwhelmed individuals who lack the time and/or confidence to deal with their tax debts. They make false promises and attempt to collect upfront fees for work they never perform.
The truth is that most taxpayers don’t qualify for any sort of tax relief at all. But companies with bad intentions can use the lure of lowered or even eliminated taxes to draw in unsuspecting consumers looking for a break.
According to the Federal Trade Commission, some fraudulent tax relief companies shake down their victims for even more money by making unauthorized charges to credit cards on file or even…
