Even during the current circumstances plaguing the country, there are still people out there who would take advantage of others for financial gain. Each year, the IRS identifies certain tax scams to watch for, and some of them come into play after Massachusetts residents file their tax returns. Below are just a couple of the scams people may want to be aware of.
In one scam, individuals will call people claiming to work for the IRS. They will demand immediate payment, request financial information and make threats if the unsuspecting taxpayer fails to pay a fake tax bill. To be clear, the agency would never make first contact via phone, nor would it ever demand immediate payment or make threats.
Some tax debt resolution companies will claim they can help taxpayers settle their debts with the IRS for only “pennies on the dollar.” It may be possible for some people to enter into an Offer in Compromise to lower their debt debt, but those individuals must meet certain criteria in order to qualify. Even so, these companies will take large fees from people already overwhelmed by their tax debt. If it sounds too good to be true, it most likely is.
Massachusetts residents dealing with unpaid tax debt may want to watch for these scams and not agree to anything before determining the truth of the claims. As for dealing with the amounts they owe to the IRS, solutions are available. In order to understand their rights and any real options, they may want to contact a tax attorney.