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You are probably already experiencing the burden of financial strain, particularly in your pocket if you are in debt to the IRS or even the state of California. The last thing you should be is someone who should exploit your fear.

This is sad because the tax relief industry has those players who actually promise everything to the sky and will go to the extent of guaranteeing such promises at a very low price- usually at pennies on the dollar- yet the taxpayer is even in a worse situation than they were initially.

Such scams are common enough that the IRS has made it to its annual list of dirty dozen scams on taxes, under the heading of Offer in Compromise Mills.

In Leading Tax Group, we think that knowledgeable taxpayers are informed taxpayers. In case you need assistance with your tax debt, you should learn to discern between a legitimate legal expert and a salesperson who sells a fantasy. The following is your guide towards the identification of scams and seeking the legitimate assistance you only deserve.

Two emotions are fear and hope, and scammers work with them. Through violent advertising techniques, they make you believe that they can help you get rid of your debt by some secret means. In case you see any of the red flags below, then halt the communications.

A radio advertisement or a social media post may tell you that they settled their $50000 debt for a mere $500! You can too!”

The Reality:  IRS has an official scheme referred to as Offer in Compromise (OIC), which enables taxpayers who are in need to pay less. Eligibility, however, is determined by a rigid formula of your income, expenses, and equity in your assets. No prepared professional can tell you that you will qualify until they analyze this or that financial situation. When they give an assurance and look at your figures, they are lying.

A lot of tax relief businesses are high-volume and high-volume call centers. They would like to have your credit card number as soon as possible. Their initial charge can be thousands of dollars as investigation fees or retainers before they have even seen your tax transcripts.

The Reality: An authentic tax lawyer or professional is generally obligated to consult to know the extent of his work before he charges an astronomical resolution fee. They will give an understandable engagement letter on what they will exactly do.

Some fraudsters allege that they have a special connection with the IRS or that they have inside knowledge that they are able to access a deal that other people cannot.

The Reality: IRS is a huge state bureaucracy that is regulated by the Internal Revenue Code. Business is not conducted on friendships or handshakes but on the basis of law and math. There is a back door into the IRS.

This warning will apply to individuals who want to get assistance in missing returns. The preparer will also print the return and will instruct you to sign and mail it, but will not sign it himself.

The Reality: Any professional compensated to create a tax return to the federal government must be required to sign the tax return and add their Preparer Tax Identification Number (PTIN). In case they are unwilling to sign, they are likely to have added fake details on the return to overcharge your refund, and they do not want to be caught.

The worst case with your future money is that you cannot afford to have a non-qualified individual whose ethics are questionable. This is the way that you can make sure that you have the right person when it comes to hiring.

In case of severe tax debt problems (such as audits, appeals, and collections), you usually want one of the following:

• Tax Attorneys: Tax lawyers. They possess the most significant rights to represent as well as represent you in a court. More importantly, they provide the Attorney-Client Privilege, such that what you say cannot be provided to the IRS and used against you.
• Certified Public Accountants (CPAs): Licensed Accountants who have completed the Uniform CPA Examination.

Check their license in these official government databases:

• On behalf of Federal Tax Preparers, Federal tax preparers can check their credentials using the IRS list of federal tax return preparers.
• For an attorney in California, use the State Bar of California Attorney Search to check online whether the attorney is licensed and also to verify whether the attorney has a disciplinary history.
• CPA: California Board of Accountancy licensed lookup.
• In Wall Street lenders (Californian Tax Preparers): (CRTP): make sure they are registered by the California Tax Education Council (CTEC).

Before spending thousands of dollars to send a company an application to request an Offer in Compromise, you can use the free tool provided by the IRS to research whether you can qualify as such.

• Tool: IRS Offer in Compromise Pre-Qualifier
• Note: This tool is a guide. You can use a tax attorney to navigate the grey areas so that you are maximized. Still, this tool will clarify whether you are totally ineligible (e.g., whether you can afford to actually repay the debt easily).

We are Leading Tax Group; we are so proud of being transparent. We do not sell magic tricks, but we defend and offer strategic resolution according to the tax code. In case you are under attack of some rough collections or are in some troubles that you cannot choose to be under debt, raise on contact us and we shall be sincere with you regarding what you could choose or not.

It is often difficult. Most fraudulent organizations require the payment of non-refundable investigation fees. Nevertheless, they should submit them at once to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov and the Treasury Inspector General for Tax Administration (TIGTA). You can claim with your bank about the charge with the help of evidence of the fraud when you paid with the help of a credit card.

The Fresh Start initiative is a factual collection of modifications that the IRS instituted some years ago to enable easier repayment of tax by taxpayers to evade tax-related liens. Nevertheless, scammers tend to abuse the name Fresh Start Program as a marketing buzzword, saying that there is a new and limited amnesty offered by the government. To sign up, it is not a program, but more relaxed terms of Installment Agreements and Offers of Compromise.

To a large extent, CPAs are not the right choice when there is a dispute, and a tax attorney tends to be the way to go when it comes to debt negotiation. The greatest benefit is the Attorney-Client Privilege. In the case of any committed tax fraud or even sensitive unfiled returns, a CPA may theoretically be compelled to testify against you. A tax attorney cannot. Furthermore, you can only have attorneys to represent you in Tax Court in case the IRS does not want to be reasonable.