How Do I Avoid Tax Relief Scams?

If you're overwhelmed by IRS debt, it’s natural to search for help — but not every company offering “tax relief” is legitimate. This article applies to U.S. federal tax law and helps you spot the warning signs of tax relief scams. TaxRise has helped thousands of Americans resolve IRS debt safely and legally, and we’re committed to protecting consumers from misleading practices.

To avoid tax relief scams, look for licensed professionals, avoid upfront fees, verify IRS authorization, and research the company’s reputation before signing any agreement.

What Are Tax Relief Scams?

Tax relief scams are schemes where dishonest companies or individuals promise to eliminate your IRS debt — often for a large upfront fee — and then disappear or provide no real service. These operations prey on fear, especially during tax season or after the IRS sends a notice.

Knowing how to vet legitimate help can save you money, protect your identity, and help you actually resolve your tax issues.

Why Tax Scams Happen

The IRS processes millions of delinquent tax accounts, and many Americans need help negotiating payment plans, settling for less, or avoiding collections. Tax scams happen because many people facing IRS debt are desperate for quick solutions, making them easy targets for fraud.

Scammers exploit this vulnerability by offering false promises of debt relief, often through schemes known as “Offer in Compromise (OIC) mills.” These operations aggressively market the OIC program—meant for taxpayers in genuine financial hardship—even to those who don’t qualify, charging high fees for little or no actual help.

Who Tax Scams Target

• Taxpayers who owe IRS or state back taxes
• People receiving aggressive IRS letters or phone calls
• Seniors, non-filers, and financially vulnerable individuals
• Anyone searching online for “tax forgiveness” or “settle IRS debt” services

Even smart, cautious individuals can fall victim to sophisticated marketing and high-pressure sales tactics.

What You Can Do to Avoid Tax Scams

Here’s how to protect yourself and work only with trusted tax relief professionals:

• Watch for Upfront Fees: Legitimate firms do not demand full payment before delivering services. Be cautious of inflated fees over the phone before a financial review.
• Verify Credentials: Only work with companies that employ licensed Enrolled Agents, CPAs, or tax attorneys.
• Check the BBB and Reviews: Research the firm’s Better Business Bureau rating and real customer reviews online.
• Ask for a Written Agreement: Always get a written contract that explains the service, fee structure, and refund policy before agreeing.
• Beware of “Guaranteed” Outcomes: No one can promise IRS acceptance — especially not over the phone. Be wary of “pennies on the dollar” promises without a financial analysis.

If it sounds too good to be true, it probably is. The IRS doesn’t erase tax debt overnight, and real tax resolution requires paperwork and compliance.

How TaxRise Can Help With Tax Liability

TaxRise is a trusted national tax relief firm with a proven record of tax relief success stories. We use a two-phase process: first we assess your situation thoroughly, then we execute a custom tax resolution strategy — all led by experienced professionals.

Schedule a free consultation today and let us prove why thousands trust TaxRise to fight for their financial future.

Frequently Asked Questions

• Is tax relief a real service?
  Yes — the IRS offers legitimate programs like Offer in Compromise and Installment Agreements. The danger lies in hiring dishonest companies to apply for them.
• What are red flags of a tax scam?
  Promises to completely “erase” your debt, upfront fees, lack of licensed staff, and high-pressure tactics are all red flags.
• How can I tell if a tax relief company is legitimate?
  Look for companies that are accredited by third-party organizations like the Better Business Bureau (BBB) and employ licensed professionals such as CPAs, enrolled agents, or tax attorneys.

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Reviewed by TaxRise Tax Professionals
This article was reviewed by the TaxRise Tax Professional Team. TaxRise has helped thousands of Americans eliminate millions in IRS and state tax debt. This content is for informational purposes only and is not legal or tax advice.