Red Flags of Tax Resolution Scams

The tax resolution industry's bad actors run recognizable plays, and the tells appear in a predictable order - from the first ad to the fee that buys nothing. Here are the eight, in encounter order.

In the Marketing

One: outcome promises before facts - 'settle for pennies on the dollar' is a calculation result, not a product, and nobody can promise it before computing your reasonable collection potential. Two: fake urgency - 'the Fresh Start Program expires soon' wraps a deadline around permanent rules; nothing expires. Three: government cosplay - mailers and robocalls styled to look like the IRS itself, complete with case numbers and final-notice language the real agency never uses by phone.

In the Sales Call

Four: qualification by closer - you are 'approved' for a program by a commissioned salesperson who has seen no transcript and holds no license. Five: the fee before the facts - thousands demanded up front, before anyone credentialed has reviewed anything; legitimate practices diagnose first and quote after. Six: no names - 'our team of tax professionals' instead of a person with a license number you can verify on a state bar site tonight.

In the Engagement

Seven: the 8821 substitution - the firm files a tax information authorization instead of a Form 2848 power of attorney, collecting your IRS mail while representing you in nothing; one transcript check exposes it. Eight: the silence - months pass, deadlines burn, and your own transcripts show no offer filed, no agreement posted, no work that exists on the record. The universal defense costs ten minutes: verify the license, confirm the 2848, check the transcripts, and ask the five interview questions this guide provides. Run that screen on anyone - including me. The free consultation here will pass it on the spot.