~ Your Voney Avoiding Tax Relief Scams (NAPSA)—If you owe back taxes and don’t know how youwill pay the IRS, it may seem like a companythat promisesto significantly reduce your tax bill has the answerto your problems. Not so fast. You could end up deeperin debt. According to the Federal Trade Commission (FTC), the nation’s consumerprotection agency, tax relief companies use the radio, TV and Internet to advertise help for taxpayers in distress. These companies claim that for an up-front fee, which can be thousandsofdol- lars, they can reduce or even eliminate your tax debts and stop back-tax collection by applying for legitimate IRS hardship programs. The truth is that most taxpayers don’t qualify for such programs, the companies don’t settle the tax debt and, in manycases, don’t even send the necessary paperwork to the IRS. Adding insult to injury, some of these companies don’t provide refunds and leave people even further in debt. Some taxpayers whofiled complaints with the FTC reported that, after signing up with someof these companies and paying thousands of dollars in up-front fees, the companies took more of their money by making unauthorized charges to their credit cards or withdrawals from their bank accounts. Taxpayer Tips If you owe back taxes and are having trouble meeting your tax obligation: eas From yous c= Sartet | cow = =ee ‘ww recat Tax Reporting Statement Se S Wa ‘ 2nd =aA Ee Betaren Page 1 of FNing 22s, Sere If you owe moneyto the IRS, consult with the IRS or hire a certified tax professional. Read your notices from the IRS. Ask about collection alternatives. Contact the Taxpayer Advocate Service, an independent organization within the IRS that provides free help to people who are experiencing financial difficulties or who need help resolving a problem with the IRS. Call 1-877-777-4778 or visit www.irs.gov/advocate. Save yourself some aggravation and ignore promises from companies that say you are “qualified” or “eligible” for a tax relief program to resolve your tax debt. Only the IRS can make that determination. The FTC has free materials about dealing with debt and other money management issues at www.ftc.gov/moneymatters. To file a complaint or get free information on consumer issues, visit www.ftc.gov or call, tollfree, 1-877-FTC-HELP (1-877382-4357); TTY: 1-866-653-4261.
