| They appear on late night television and on the internet | | | | $5,000. And the levy on your bank account will never |
| promising to reduce your tax debt, stop garnishments, | | | | happen! So you give them your credit card number, |
| remove tax liens and settle your debt for pennies on | | | | they charge you five grand and you go to sleep that |
| the dollar. Oh, if only it were true. Pay a company a | | | | night feeling much better. After all, a total cost of eight |
| few thousand dollars and voila, your tax debt is | | | | grand is better than $50,000. Step two of the scam is |
| reduced from $100,000 to $5,000. How's that for a | | | | complete. |
| great return on investment! | | | | Step three - your tax advisor (who yesterday was |
| Here is how the scam works: One day you receive a | | | | stocking shelves in Home Depot) asks you to send |
| letter from the Internal Revenue Service indicating that | | | | him dozens of documents, bank statements, car loan |
| you owe $50,000 to the IRS. It turns out that in 1999 | | | | paperwork, your lease or mortgage, everything. It |
| and 2000 you failed to file a tax return and now with | | | | takes a few weeks but you get it together and mail it |
| penalties and interest you owe them this money. Your | | | | to them. A month goes by and you hear nothing so |
| first impulse is to panic as you have never owed | | | | you call. Unfortunately your tax advisor is not in at the |
| anyone this much money and on the salary you make | | | | moment but will return your call. A few weeks goes |
| it will take the rest of your life to pay this debt. You | | | | by, nothing. You call again. Your tax advisor is no |
| decide to ignore this letter and hope the IRS will go | | | | longer working there and your account has been |
| away, until next month when you receive a second | | | | transferred to tax advisor #2 who will return your call. |
| letter, and then a month later a third. Finally, six months | | | | A few weeks goes by, nothing. You call again and |
| later, you receive a certified letter from your bank and | | | | finally get to speak to someone. They tell you that |
| your employer - the IRS is going to take what little | | | | they are new to your case and that they will need the |
| money you have in your bank account and they are | | | | following documents to effectively evaluate your |
| also going to garnish a large part of your wages. By | | | | situation. It takes a week or so, but you finally get them |
| now you are losing sleep and are considering moving | | | | into the mail. A month goes by and you call to find out |
| to Bolivia. Good idea. | | | | what is going on only to be told that your tax advisor is |
| Then lying awake at three o'clock one morning the | | | | on vacation and will get back with you when he |
| face of an angry female attorney appears on your | | | | returns. Another month goes by - nothing. By now it |
| screen telling you she will fight the IRS for you and that | | | | has been almost six months since you hired this firm to |
| she will win! She promises to reduce your debt and | | | | help you. The IRS has since taken all the money in |
| stop the IRS from taking your stuff! All you need to do | | | | your bank account and your wages have been |
| is call the following toll free number and, by the way, | | | | garnished every week leaving you with nothing. |
| have your credit card ready! Step one of the scam is | | | | Finally your advisor calls you - "We have evaluated |
| complete. You are in debt, you are losing sleep and | | | | your case and have determined that there is nothing |
| you have her number. | | | | we can do to help you. You do not qualify for an offer |
| Step two begins with a simple telephone call to | | | | in compromise as you have a regular job and can pay |
| someone called a tax advisor - in reality a | | | | the full amount. You should call the IRS and arrange for |
| commissioned salesperson. What you do not know is | | | | an installment agreement. We will do so for you, buy it |
| that this salesperson has financial problems of his own | | | | will cost an additional $2,000. If you do not wish for us |
| and that the only way he can pay them is to get your | | | | to do so, we will return your documents to you, thank |
| credit card number and sell you their bogus services. | | | | you for your business." |
| The salesperson will discuss your situation with you, | | | | In the past six months your debt has grown with |
| not to determine how best to help you, but to figure | | | | interest to $55,000, you are out $5,000 to the tax relief |
| out how much you would be willing to pay and how | | | | company and your situation is far worse than it was |
| much he can put on your credit card. It will be a large | | | | when you began. Of course you ask for your money |
| figure. | | | | back from the company that scammed you only to be |
| He will be very positive about their ability to reduce | | | | told "It is not our policy." "I'll sue!" you bellow into the |
| your debt and stop the garnishment. He will repeat that | | | | phone, but by then they are gone. You will never see |
| your $50,000 debt can easily be settled for $3,000 | | | | your five thousand again. The scam is complete. |
| given your financial situation, and it will only cost you | | | | |