7 Tips From the Experts

The MN Attorney General’s office is just one of dozens of to issue an official Consumer Advisory Alert regarding tax resolution services in the past few years.  They did so in response to the malicious advertising claims of TaxMasters – a now bankrupted company who was sued $195 Million dollars by the Texas Attorney General.  According to Forbes, they had over 100,000 charges of violating the deceptive trade practices laws that businesses are responsible for adhering to.

We offer this CRITICAL advice for how to dodge a tax resolution services scam:

    1. Learn your options before hiring. The IRS offers solutions to taxpayers who owe tax debt. Some solutions are simple enough that the average taxpayer could resolve their debt on their own, but some are highly complicated. Don’t hire a tax service unless you know why their option is better than the alternatives.
    2. There are no quick fixes. Remember: there is no magic solution toward getting out from under tax obligations. Beware of tax relief companies that promise that they can drastically reduce your debt for zero effort.
    3. Shop around before making a decision. As a consumer, you have the advantage of shopping from different competitors. Take advantage of that by asking for referrals, researching BBB ratings, and getting a clear picture of cost, timing, and who you’ll be working with.
    4. Bigger isn’t always better. In the case of tax resolution, hiring the biggest tax resolution service may not be in your best interest. Small companies will sometimes have lower overhead and offer a more personalized service.
    5. Pick a plan tailored to your needs. A legitimate advisor must take time to understand your income and expenses, as well as the nature of your issue with the federal or state taxing authorities.
    6. Does it sound too good to be true? Remember: if a promise sounds too good to be true – it usually is. Tax resolution is a very competitive industry and some services will say anything to get your business.
    7. Learn from other consumers. Check out our Top 7 Tax Resolution Services Company Complaints to learn how and why consumers get involved with a bad tax resolution service.


Anyone with tax debt should heed this critical advice for how to dodge a tax resolution services scam, and if you have advice to share, please do so in the comments section!

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