'Most taxpayers don't qualify.' Promises to eliminate your tax debt could end up costing you more
While the official tax filing deadline is over, it's not stopping scammers from going after those of you who owe the IRS money. Several ABC11 viewers are getting calls from a tax debt relief program that claims it can significantly reduce or eliminate your tax debt.
However, the IRS and Federal Trade Commission warn this promise could end up costing you more than you owe.
The caller claims that this program is part of the American Rescue Plan and their program is open for enrollment.
"Your tax that can now be considered temporarily uncollectible," part of the voicemail states.
However, the IRS and the FTC are warning you not to respond to these calls, emails, and texts as there is no tax relief debt plan like this offered. While the company makes big promises, the IRS says most taxpayers don't qualify for tax debt relief.
Instead of paying a company large upfront fees to try and settle your tax debt, you can work directly with the IRS. One option is applying for a payment plan directly on the IRS's website. The fees for each plan are explained in detail and if the IRS approves, it allows you to make smaller monthly payments until the debt is paid off.
Another option is the Offer In Compromise through the IRS. This program allows you to permanently settle your tax debt for less than you owe, but very few taxpayers qualify. You can go online here and answer the questions to see if you pre-qualify.
RED FLAGS TO SPOT
- The biggest red flag when it comes to offers from companies that claim they can reduce or eliminate your tax debt is when you're asked to pay money upfront for tax relief help.
- If a company makes any guarantees that is another red flag, as only the IRS can make that decision.
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