Tax Resolution Scams
  • April 27, 2017
  • admin
  • 0

A tax relief organization can help individuals settle their tax debts and avoid IRS penalties such as bank levies and wage garnishments. What you may not know is that there are some unscrupulous tax resolution companies perpetrating tax relief scams. Partnering with such companies can worsen your problems before we can even start talking about settling your taxes and avoiding IRS tax penalties. That is why you must first learn about a company’s history and know how to avoid IRS debt relief scams before securing their services. In this blog post, we introduce four signs that can help you avoid IRS debt relief scams.

1. Pennies on the Dollar

While the IRS allows taxpayers to pay less taxes than they owe, this depends on a number of factors. You can pay less than what you owe through an “Offer in Compromise” agreement. Similarly, if you qualify for the innocent spouse tax relief program, you may not have to pay any tax, at all. Any debt relief company therefore, cannot promise to help you pay less tax than what you owe from the outset, and if it does, be careful, as it might be a tax relief scammer.

2. Guaranteed Acceptance of Settlement Offers

The IRS understands that there are individuals who genuinely want to settle their tax debts but are unable to do so due to financial problems. That is why it offers provisions such as “Offer in Compromise”. This does not mean that the IRS will accept any and every settlement offer. If a company guarantees that to get your settlement offer accepted or claims that the IRS has never denied any of their settlement offers, watch out. You could be in the wrong hands.

3. Promise to Stop Levies

If the IRS decides to levy your bank account or wages – after they have sent you the “Final Notice of Intent to Levy” –  the only way to stop the action is paying your taxes. The IRS may allow you to pay your taxes in installments, more time to settle your taxes, or pay less than what you owe, but you will have to pay your outstanding tax debt. Whether the IRS extends such provisions, depends on the case under consideration. No firm can therefore, guarantee that they will prevent your wages from being garnished unless they have spoken to and heard from the IRS.

4. Large Upfront Fee with No Guarantees

The biggest sign of a tax resolution scammer is that they ask for a large upfront fees without even studying your case. The companies boast that they have helped thousands of people settle their tax dues and can help you do the same, when they do not even know what the IRS thinks about your case. The fee they ask is often non-refundable, and they often do not have a local office in your area.

Must Read: Tax Debt Settlement: Everything You Must Know On IRS Tax Settlement Firms


There are many companies running scams in the name of tax resolution firms. The tax relief scammers charge you huge amounts of money without solving your problem, and can even take you from the frying pan into the fire by recommending illegal actions. That is why it is important to always check the credibility of a tax relief firm and know how they work. Ensure they are not a national chain of tax relief offices but a team of financial tax analysts, case managers, and CPAs, with proven expertise in their field. If you need to work with reputable experts who abide by the strictest ethical practices and seek solid resolutions to your tax issues, contact the Law Offices of Nick Nemeth. To schedule an appointment with Nick Nemeth personally, please call us at  (972) 426-2553. You can also fill out our contact form, and we will get back to you shortly.

Please follow and like us:

What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
Quick Inquiry


    Enter the text you see above