Tax Debt Resolution Services: Facts and Fiction

Last updated on November 6, 2023

In the recent past, many fraudulent tax resolution services were exposed. These services used unethical business practices such as hidden fees, distorted advertisements, and exaggerated upfront fees to take advantage of unsuspecting clients.

In many cases, fraudulent companies were exposed after the Federal Trade Commission (FTC), the Better Business Bureau (BBB), and other consumer protection agencies received consumer complaints. They then took legal action against the fraudulent tax resolution services and closed them down.

When choosing a tax service, taxpayers should be told the total fee for the resolution. Consumers should also ask the service if they will be charged any other fee before the resolution is completed. Many tax resolution companies require some sort of down payment to begin a case, but should not demand the full amount. Any company that insists the entire fee be paid upfront is not to be trusted.

A legitimate resolution service promises what can be legally delivered. They encourage inquiries from taxpayers and provide them with accurate information on the resolution process, their services, the fee, and so on. Before hiring a service, it is advisable to conduct research to ensure the group you’re dealing with is legitimate.