Tax Resolution: Stay Safe!

Tax Resolution: Stay Safe!

To handle any tax resolution case, filing and staying in compliance is a key factor. This means that tax season, and the hot topics surrounding it, are important topics to stay updated on.

Just like clockwork, all sorts of notices from the IRS have been sent out regarding the latest schemes to take advantage of taxpayers and while some of 2020’s scams are simply modernized versions of traditional cons, there are some alarming twists.

  • "Pennies-On-the-Dollar" Settlements 

    Have you ever seen those ads and commercials saying that you can settle your tax debt for "pennies on the dollar"? While that is an legitimate option for tax resolution, (it's called an Offer In Compromise), not everyone qualifies for that route. In reality, those deals make up the minority of the cases the IRS handles. Often times, people will get bate-and-switched into thinking they can get an OIC, but they just pay extra money to get the same installment agreement they would've gotten in the first place. This is why it pays off to hire a tax resolution professional to get rid of your tax debt correctly and permanently.

  • “The Bureau of Tax Enforcement”

    In this one, an official-looking letter arrives,  claiming to be from the “Bureau of Tax Enforcement.”  In some cases, it’s mentioned the IRS, but in most, it simply states this bogus bureau is the collection arm of the IRS. It is designating where taxpayers can call to pay over the phone or where they can send payment for purported shortages owed to the United States Treasury.   Obviously, it’s a fraud, but the impressive-looking delivery and legitimate-sounding verbiage of the letter has duped many people thus far.

  • IRS Impersonators

    This is a very old scam with a modern twist. An email or phone call, claiming to be from the IRS is received with incredibly detailed instructions regarding a taxpayers’ refund.  In the message, the taxpayers is directed to visit a certain website to view their refund progress. What happens next? You guessed it! That site gathers the taxpayer’s information and sets up a situation where their identity is stolen.

  • Ghost Tax Preparers

    This is an old one, too, but until recently, was only a problem for a small percentage of taxpayers.  It works like this:  a taxpayer pays someone to prepare and file their return and that preparer (generally) makes certain guarantees regarding the size of the return.  In exchange for a “maximum” return, the taxpayer will pay a premium – up to $1,000 – for the service, but the actual person who prepared the tax return will never sign the return (as they legally must do).  The results?  The taxpayer is “on the hook” for monies owed, is often audited, and the tax preparer?  They effectively defrauded both the taxpayer and the government.

There are tons of different ways these and countless other scams are carried out, but the basic way to fight ALL of them?  Simple – have a professional prepare your taxes and handle your tax resolution case.  Make sure they have a “real” office, not some sketchy set up that opens in January in an empty strip mall and is closed on April 16th.

Call us today to set up a free tax resolution consultation.  (719) 694-5505 .

Blackhawk Tax Solutions, LLC

(719) 694-5505



Want to avoid common mistakes when filing your taxes? Check out our past article below.