Tax resolution scams involve fraudulent companies posing as IRS representatives or "tax experts" who promise to settle tax debts for "pennies on the dollar". They often use high-pressure tactics, demanding large upfront fees for services they do not provide, stealing personal information, or failing to submit necessary paperwork.

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Tax Resolution Scam

  • Unsolicited Contact: Scammers call, email, or text, claiming you owe back taxes and demand immediate action.
  • "Pennies on the Dollar" Promises: Claiming they can drastically reduce tax debt for everyone, which is rarely true.
  • Immediate Upfront Fees: Demanding payment before any work is done.
  • Impersonation: Using fake names like “Tax Resolution Oversight Department”.
  • Threats: Threatening immediate arrest or lawsuits.

Protect Yourself

  • IRS Contacts by Mail: The IRS sends written notifications first, never initial calls.
  • Do Not Engage: Hang up immediately on unsolicited calls. Do not press buttons, even if told it will remove you from their list.
  • Verify Independently: If worried, call the IRS directly at 800-829-1040, using the number from the official IRS website.
  • Report Scams: Report fraudulent calls to the Treasury Inspector General for Tax Administration (TIGTA) or the Federal Trade Commission (FTC) at ReportFraud.ftc.gov.