Tax-Settlement Companies

How the scam works:

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.

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 up-front 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 power of attorney over your tax debt, certainly stay away.

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