Many unscrupulous tax debt settlement companies swindle consumers using the legitimate IRS offer-in-compromise process. A recent Inc. magazine article lists tax relief services among its “7 Businesses To Watch Out For”. I do not doubt it! As a Maryland tax attorney I have received countless calls from taxpayers who previously fell victim to scam tax relief companies that claimed they could resolve any tax problem through the IRS tax debt settlement program, the Offer-In-Compromise.
Conversations with clients previously cheated by these companies provide me the following tell-tale signs of an unethical tax settlement company: