How to spot a tax-relief scam
The “tax relief” industry earned its bad reputation. The FTC and IRS regularly warn about firms that prey on people who owe back taxes. Here are the red flags to watch for — and what honest help looks like instead. (Yes, we built this knowing it’s how you should judge us, too.)
“Settle your IRS debt for pennies on the dollar — guaranteed!”
No one can guarantee an IRS outcome. The IRS accepts only about 1 in 5 settlement offers (FY2024, and falling). This is the single most common scam promise — and the FTC has repeatedly sued firms for it.
What we do instead: Honest odds. We tell you plainly when settling isn’t realistic for you — most people qualify for a payment plan, not a settlement.
Large upfront fees before any work — $3,000 to $7,000, or a percentage of your debt.
Predatory “tax-relief mills” collect big retainers, then often do little. Many of the largest firms have hundreds of complaints and refuse refunds after an “investigation phase.”
What we do instead: A flat $49 for your Action Plan — fully refundable if it isn’t useful. No retainer, no percentage of your debt, no surprise fees.
They contacted you first — a robocall, text, or letter saying they can wipe out your debt.
The IRS generally initiates contact by mail, not robocall. Unsolicited “we can erase your tax debt” outreach is a classic scam signal the IRS warns about.
What we do instead: You come to us. No cold calls, no robocalls, no pressure. Start the free analysis only when you’re ready.
A “free consultation” that’s really a high-pressure sales call.
The “free consult” is often a closer’s pitch designed to sign you to a costly contract that day.
What we do instead: Fully self-serve. No phone call, no sales rep. You read your options and decide on your own time.
They want your SSN and full financials before they’ll tell you anything.
Harvesting sensitive data up front is both a privacy risk and a sales tactic. Your information can be shared or sold.
What we do instead: No SSN required for your analysis. We never sell your data. We ask only what’s needed to show you your options.
“We’re tax experts/attorneys” — but no named, licensed person is shown.
Anyone can claim expertise. Only an Enrolled Agent, CPA, or attorney can represent you before the IRS.
What we do instead: We’re clear about what we are: self-help information and decision-support — not a law firm, and not a substitute for a licensed professional. When you need representation, we’ll tell you.
They tell you to stop responding to the IRS and just talk to them.
Ignoring IRS notices — especially a Final Notice (LT11 / Letter 1058) with its 30-day deadline — can cost you the right to a hearing and lead to levies.
What we do instead: We help you understand your notices and deadlines so you can act in time — including the free options you can use directly at IRS.gov.
You can also handle it yourself — free
The IRS offers a free Offer in Compromise Pre-Qualifier and lets you set up payment plans directly at IRS.gov. If your case is simple, that may be all you need — and we’ll tell you so.
Promoza Tax provides self-help information and educational tools to help you understand IRS collection options and prepare to file your own forms. We are not a law firm or a tax-representation service, and this is not legal or tax advice. Any estimates are illustrative; your specific circumstances and official IRS forms control. For representation before the IRS, consult a licensed Enrolled Agent, CPA, or attorney. Promoza Tax is not affiliated with, or endorsed by, the IRS. Individual results vary; we do not guarantee that your tax owed will be reduced.