After reviewing my alerts that I posted a few weeks back, I decided that there was a very important one that I had overlooked. So I decided to repost the original warnings so everyone can have a heads up about these Tax Relief Companies are trying to sell you:
These are my Top 6 Alerts when looking for Tax Help
1. Beware of Retainer Fees:
Beware of any company that has a "Retainer Fee." Retainer means that fees are subject to change. And chances are good that they will.
2. No Refund Policy:
Watch out for companies that don't have a refund policy. You want a company that stands behind their work; if they don't offer a refund, ask them "Why?"
3. Watch Out for Hidden Fees:
Look out for hidden fees. Convenience fees are a big red flag. These companies will tell you one price, and once you get their contract, you'll read another. It's a perfect example of a "Bait and Switch" scam.
4. Pennies on the Dollar Scams:
Make sure the information you are being told is correct; especially on Offer in Compromise Programs. Remember, with an OIC, 98% of cases are rejected by the IRS. A non-refundable, lump sum 20% of offer down payment is required, and you must make a five-year commitment to follow a long list of tax rules.
5. Right to 3-Day-Rescission:
Make sure the company has at least a three-day rescission or "opt-out" on their contract. Fast talking companies just want your money; they don't want you to get out of their contract.
6. Power of Attorney Tricks:
Some companies will tell you that just by filing the Power of Attorney (POA) your case is put on hold. They also say that filing POA can lift bank levies and garnishments. That's not true! The truth is, filing POA makes negotiation with the IRS possible, but it does not put your case on hold! If a company tells you that, take off running!
, some companies won’t tell you these things when you talk to them so be sure to ask questions. Don’t be afraid to put them on the spot. A well-versed consultant should be able to answer your question promptly and honestly.
Now you have the smoking gun…Use it!