Attorney General John Bruning is warning Nebraskans to be wary of tax relief scams that hit especially hard during tax season.
Bruning says to looks out for companies that are charging upfront fees in exchange for tax debt relief or elimination.
He said, "In some cases, these companies don't even file the proper paperwork
with the IRS. If they do, most taxpayers will not qualify for the promised debt
reductions. In the end, consumers who contract with these scammers are left
with little to show for the fees they paid and have less financial resources
than they started with."
Bruning warns that regardless of what tax-relief is promised, total tax-debt forgiveness rarely occurs. He says the IRS may offer reductions for penalties due to hardship conditions, but he warns that is a rare situation.
Bruning advises individuals in need of tax relief to work directly with the IRS to negotiate a payment plan to avoid being scammed by an illegitimate tax relief company.
According to the IRS, there are
legitimate options offered for those with unpaid tax debt:
- An Installment
Agreement is generally
available to people who can't pay their tax debt in full at one time. The
program allows people to make smaller monthly payments until the entire debt is
satisfied.
- An Offer
in Compromise
lets taxpayers permanently settle their tax debt for less than the amount they
owe. The OIC is an important tool to help taxpayers in limited circumstances.
Taxpayers should note, however, eligibility is only considered after all other
payment options have been exhausted and ability to pay has been reviewed by the
IRS.
Consumers may also contact the
Taxpayer Advocate Service, an independent organization within the IRS. The
Advocate Service provides free guidance to people experiencing financial
difficulties or those who need help resolving a problem with the IRS. The IRS
Taxpayer Advocate Service can be reached at (877) 777-4778 or irs.gov/advocate.
For more
information on the federal tax collection process and payment options, visit irs.gov. For more information on consumer-related
scams, contact the Attorney General's Office Consumer Hotline at (800) 727-6432
or visit ago.ne.gov.
