Struggling with tax debt? Here’s what to know

If you owe back taxes, there are ways to get real help. But dishonest companies will promise to get rid of your debt for “pennies on the dollar,” before even looking into your tax situation. They’ll often charge service fees without actually doing anything for you, and leave you further in the hole with local, state, or federal tax authorities. That’s exactly what led to the FTC’s nearly $10 million settlement with the owners of American Tax Service (ATS) . According to the FTC, ATS mailed out letters impersonating the government , demanding that people call by a specific date or risk property seizure. The FTC also says ATS ran ads on TV, radio, and online, including on podcasts, which led people to scammy sales calls filled with false promises of tax debt resolution. If you need help paying your taxes : Ignore promises from businesses that say you "qualify" for a tax relief program or that they’ll settle your debt for only a fraction of what you owe. Only the IRS or your state’s comptroller or revenue department can decide what you qualify for. Don't do business with anyone that tells you to pay their whole fee upfront. If they say that, walk away. Know that no company can guarantee a particular result. Every taxpayer’s situation is unique. Visit the IRS’ Taxpayer Advocate Service website for help with federal tax problems you can’t resolve on your own. For help with state taxes, contact your state comptroller . And if you spot a scam, tell the FTC at ReportFraud.ftc.gov . Topics Scams