What Tax Debt Relief Scams Taught Us

Last updated on January 24, 2022

During the past few years, many well-known national tax resolution companies were discovered to be running scams. These multi-million dollar tax scams shocked the nation with their enormity. After it became general knowledge that many tax relief companies cheat taxpayers using exaggerated upfront fees, false advertising, and business malpractices, taxpayers began to mistrust the tax resolution industry.

With the passing of time, taxpayers have now found ways to identify legitimate tax services. A major positive that has come out from the busting of fraudulent tax resolution firms is the increased defense by consumer protection agencies. The Federal Trade Commission (FTC) and the Better Business Bureau (BBB) continually inform taxpayers about fraudulent tax companies and those that have an unreasonable number of consumer complaints.

With the FTC and the BBB, it is easier than ever for taxpayers to complain about scam tax companies. These consumer complaints are made public and easily accessible for taxpayers in order to avoid large tax scams by national companies.

The multi-million tax scams of American Tax Relief, Roni Deutch, and Tax Masters have exposed the methods used by these tax frauds to dupe taxpayers. It is the combined efforts by law enforcement agencies, consumer protection organizations and taxpayers that limit fraud in the tax resolution industry, which is not only good for taxpayers but also for the industry.