The FTC is mailing refund checks totaling more than $16 million to 18,571 people who paid American Tax Relief, a company that claimed it could reduce their tax debts. Under the settlement, the defendants turned over millions of dollars in assets, and are banned from telemarketing and selling debt relief services.
If you owe back taxes, you may be tempted to pay a fee of hundreds or thousands of dollars to companies that claim they can reduce or eliminate your tax debts. Unfortunately, these companies often leave people even further in debt. If you’re having trouble meeting your tax obligation:
- read your notices from the IRS or your state comptroller. Ask them about collection alternatives.
- ignore promises from any company that says you are "qualified" or "eligible" for a tax relief program to resolve your tax debt. Only the IRS or your state comptroller can make that determination.
- walk away if a company requires a fee in advance for tax relief services.
If you believe you’ve lost money to a tax relief scam, file a complaint with the FTC.