Tuesday, February 12, 2013

Finance: Tax relief scammers get your money and run

By Herb Weisbaum, today Contributor

Valerie Tobias, Grandma, who lives just outside of Chicago, was a television commercial for American tax relief the answer to her prayers.

"They promised that it would compensate for the taxes for pennies on the dollar," said Tobias.

At the time owed to the IRS about $ 12,000 and had no way to pay the tax bill. So she called the company and was told that the entitlement to tax relief. They could start working on her case as she paid $ 3,800.

"They took the money and did nothing, absolutely nothing," said Tobias. "They are trying to better their situation, that took care of taxes and they lied to me. It was horrible. "

Tobias is one of thousands of people across the country who took the bait and paid u.s. tax credits significantly reduce their tax bills. The Federal Trade Commission (FTC) says that the company is in approximately 103-million dollars before it was shut down in September 2010.

This week, a Federal Court ordered the company and its owners pay more than $ 15 million in cash and assets to pay the charges that they violated federal law.

"We found that from about 20,000 consumers, less than 600 received a tax reduction, which were more than paid for by the American tax relief," said Karen Dodge, FTC attorney who led the case.

Did Eva Russell Pemberton, New Jersey, who described their experience as "a real nightmare."

Russell and her ex-husband owned a business that owes the State of New Jersey "huge" tax bill. American tax relief, he said, that it would be able to get a reduced fee of $ 12 000, payable in advance.

"They said that they have lawyers, who would work with the State to reduce the amount that we owe you." Russell told me. "They said that they could guarantee that."

Russell thought that a legitimate company. It had a nice web site with testimonials from people who said they helped them. She was assigned a case manager, who said that he would handle everything.

But after a year of waiting, nothing happened. Russell tried to get their money back without success.

"Shame on me, how to get involved, but it's incredible that someone take $ 12,000 and do nothing," she said. "I'm not a stupid man. I have a postgraduate degree, but you'll feel after something like that stupid. "

Watch out for tax relief for companies
Abusing the tax relief services to people in need. They say that they can dramatically reduce or even eliminate tax debt and stop the garnishment or other back taxes. I don't believe it.

"In fact, it is not possible for most people," said the FTC'S Karen Dodge.

Has an "Offer in compromise" program, which allows people to resolve their tax debt for less than is owed, but you have to prove that they cannot pay the full amount.

"There's a trick to this. You have to be qualified by the IRS, not the company, which says it is entitled to, "said Dodge. "There are no guarantees. Many documents need to be reviewed in order to determine whether you are eligible. It cannot be executed in a short phone conversation. "

The FTC'S advice: If you have someone to help you with the problem of tax paying, make sure that they are legitimate. You can find a good accountant, CPA or lawyer. Contact your tax office and see what you can do for yourself.

Give your money to the scammer tax relief, and that you'll never see it. It will be worse off than when you started.

For more information:

ConsumerMan Herb Weisbaum is The. Follow him on Facebook and Twitter, or visit the Web page of the ConsumerMan.

Finance; Car Insurance; Health

Finance; Insurance; Business

Source: http://allaboutfinanceinfo.blogspot.com/2013/02/tax-relief-scammers-get-your-money-and.html

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