How the scam works:
Tax settlement companies and fake impersonators. Watch out for the latest scam in the industry, Tax Relief Companies or Tax Settlement scam. Let's take a look.
During the economic crisis, tons of tax-settlement so-called “agents” have developed great businesses relying on people's desperation to save every cent they can.
Unfortunately, hundreds of these “specialists” advertise themselves as saviors, promising people they can make their tax-debts disappear. They charge exorbitant prices in advance, only to claim in the end that “your situation is a little complicated, and unfortunately not much can be done”.
Fees charged by these “consultants” could vary, from $400 to even $25,000, depending on what they are catching on the hook.
Watch the video below to in action the Tax Relief Companies scam exposed:
How to avoid:
Although there are legitimate programs that can help you save money, you should stay away from “specialists” who are asking for large fees upfront and conduct their business only through email or phone, never in person. Try to visit their office, research every name, and if they are asking you to give them the power of attorney over your tax debt, certainly stay away.
How to report:
Make your family and friends aware of this scam by sharing it on social media using the buttons provided. You can also officially report the scammers to the Federal Trade Commission using the link below:
How to protect yourself more:
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